US Senators Race to Finalize Crypto Market Structure Bill Ahead of Holiday Recess

TLDR:

• Senate Republicans push for markup next week to advance crypto market legislation.
• Democrats seek stronger governance and consumer protection measures in the bill.
• Agriculture Committee’s draft leaves DeFi and other sections unresolved.
• Industry closely watches negotiations as holiday recess approaches, signaling urgency.

Senators are accelerating efforts to finalize the crypto market bill as the holiday recess approaches. 

Lawmakers are negotiating key provisions to create clear rules for the cryptocurrency industry, with only days remaining in the congressional calendar.

Republicans are pushing for a markup next week, while Democrats continue seeking revisions to address governance and consumer protections.

 Industry participants say the process is entering its most intense phase.

Republican Push Meets Democratic Caution

Republican senators are eager to hold a committee markup next week after months of drafting the crypto market bill. Sen. Cynthia Lummis described the current draft as “our best effort to date” and emphasized the importance of moving forward. 

She told attendees at the Blockchain Association Policy Summit, “We’ve been engaging hours on end, and it’s just time to take a draft.”

Lummis added that staff fatigue and rising tensions make it necessary to release a draft before the holiday break.

 “A couple of things that I can sense are happening. Industry’s getting a little concerned about what’s happening behind closed doors,” she said, noting that revealing a product allows members to review it carefully while giving staff a break.

The Senate separated market structure legislation from stablecoin rules passed in July. GOP senators have focused on creating clear regulatory frameworks and splitting oversight between the SEC and CFTC. 

Lummis noted that this structure is central to maintaining consistent market guidance.

Complicating the process, both the Senate Banking and Agriculture Committees are involved. The Agriculture Committee released a 155-page bipartisan draft in November, but several provisions, including those related to decentralized finance, remain unsettled. 

These areas are now the main focus of negotiation.

Democrats Seek Safeguards as Negotiations Continue

Democratic lawmakers argue that further safeguards are necessary before any markup proceeds. 

Sen. Ruben Gallego, the top Democrat on the Senate Banking Subcommittee on Digital Assets, acknowledged, “There are a ton [of sticking points]. Both sides are still trading paper.”

Sen. Cory Booker also emphasized careful collaboration with Sen. John Boozman, noting, “It needs to be done right. 

I have an incredible negotiating partner in Chairman Boozman, so I’m just going to do everything I can to do it right.”

A group of 12 crypto-friendly Senate Democrats met with industry participants Wednesday, with one source describing staff working 14-hour days to resolve remaining issues. 

“There are still a lot of issues to be resolved, frankly, but I don’t think this is an impossibility before next week,” the source added.

Documents obtained by media show GOP staff offering concessions on quorum and ethics provisions, supported by the White House. 

Democrats countered with requests for consumer protection, governance measures, token classification rules, and limits on elected officials issuing or endorsing digital assets. Sources indicate that Senate Banking Chair Tim Scott may proceed with a markup if negotiations stall, signaling potential movement before the recess.

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