What Is the Senate Planning Next?
The Senate Banking Committee is preparing to take its next step on crypto legislation, with plans to hold a markup on a market structure bill before the end of April. The move would allow lawmakers to amend and vote on the proposal, advancing it toward a full Senate vote.
“We’re going to mark it up in April, we’re going to mark it up after the Easter recess,” Sen. Cynthia Lummis said at the DC Blockchain Summit in Washington.
The markup represents a key procedural stage. If completed, it would move the Senate closer to aligning its version of the bill with parallel efforts in the House and Senate Agriculture Committee, both of which have already advanced their own frameworks.
The proposed legislation is expected to clarify regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission, define when digital assets fall under securities or commodities rules, and introduce disclosure requirements for market participants.
Investor Takeaway
Why Has the Bill Faced Delays?
Progress on the Senate version has been uneven over the past year. A planned January hearing to advance the bill was canceled shortly before it was due to take place, following Coinbase’s decision to withdraw its support. That setback highlighted how industry alignment remains a factor in legislative momentum.
At the same time, lawmakers have been working through disagreements across multiple committees. The House passed its version of the Clarity Act with bipartisan backing, while the Senate Agriculture Committee advanced its own bill along party lines, reflecting differences in approach between Republicans and Democrats.
Before reaching a full Senate vote, the various proposals will need to be reconciled into a single framework. That process adds another layer of negotiation at a time when legislative calendars are tightening.
What Issues Are Holding Up Agreement?
One of the central sticking points has been whether stablecoin issuers or related platforms should be allowed to offer yield to users. The issue was partially addressed in the GENIUS stablecoin law passed in July, which bars issuers from paying direct interest while leaving room for third-party platforms to offer rewards.
“We got hung up on things that I did not expect we would,” Lummis said, noting that yield-related discussions became a major obstacle. She added that a compromise may now be within reach.
Banks have pushed back against allowing yields, arguing it could pull deposits away from traditional institutions, particularly smaller lenders. Crypto firms, on the other hand, have argued that restricting yield products would limit innovation and reduce competitiveness.
Decentralized finance has also drawn attention, particularly among Democrats who have raised concerns about illicit finance risks. In addition, some lawmakers have pointed to potential conflicts of interest tied to political figures involved in crypto-related ventures, adding another layer of complexity to negotiations.
Lummis said concerns around DeFi “have been put to bed,” suggesting that at least some areas of disagreement may be closer to resolution.
Investor Takeaway
How Much Time Do Lawmakers Have?
Timing is becoming a central factor. With midterm elections approaching in November, legislative priorities are expected to shift as lawmakers focus on their campaigns. Changes in control of either chamber could also alter the direction of crypto policy.
Sen. Bernie Moreno warned that the coming months will be decisive. If we don’t get the Clarity Act passed by May, digital asset legislation will not pass for the foreseeable future,” he said.
Even if the Senate advances a bill, it would still need to be reconciled with the House version before being sent to the president for final approval. That process leaves a narrow window for agreement, particularly given the number of unresolved issues.
For market participants, the timeline suggests that 2026 could determine whether the US establishes a unified regulatory framework for digital assets or continues with a fragmented approach shaped by agencies and court decisions.
