U.S. Crypto Market Structure Bill Negotiations to Extend into January
Senate negotiations on a crypto market structure bill remain unresolved on several points and are likely to extend into January after the holiday break. Draft legislative language has circulated privately and was briefly shown in a White House meeting led by crypto adviser Patrick Witt, but it has not yet received industry endorsement.
Key disputed issues include ethics rules governing government officials' involvement with digital assets, whether stablecoins should be tied to yield, the Securities and Exchange Commission's authority to define tokens, and the regulatory treatment of decentralized finance (DeFi). The White House has pushed back on the Democrats' ethics approach, citing concerns about top officials potentially profiting from crypto interests, with examples such as former President Trump.
Patrick Witt stated that the White House and Senate Republicans are aligned on protecting software developers and DeFi. Officials remain optimistic about a formal committee markup in the coming weeks, highlighting high tempo and momentum among involved parties and lobbyists.
Passing the bill would define crypto tokens, establish market-operating rules, and clarify agency jurisdiction. In the absence of comprehensive legislation, regulators continue to pursue guidance and rule proposals. If negotiations extend into January, markups could occur in the Senate Banking and Agriculture Committees, potentially intersecting with a broader budget fight scheduled for that period.
