Trump to Sign Crypto Bill This Year Says SEC Chair as Senate Releases Major Draft

TLDR

• SEC Chair Paul Atkins expects President Trump to sign a crypto market structure bill in 2025, calling it key to making America the crypto capital of the world
• The Senate Banking Committee released a 278-page draft bill Monday night addressing stablecoin yield, DeFi rules, and securities regulations
• The bill prohibits paying interest or yield solely for holding payment stablecoins but allows activity-based rewards like transaction incentives
• Cryptocurrencies currently in ETFs like XRP, Solana, and Chainlink would not be classified as securities under the bill
• Senate Agriculture Committee postponed its markup to late January while Senate Banking Committee proceeds Thursday, with potential government shutdown by Jan 30 threatening progress

Securities and Exchange Commission Chair Paul Atkins expressed confidence Monday that comprehensive crypto legislation will reach President Donald Trump’s desk for signature in 2025. Speaking to Fox Business, Atkins praised the bipartisan effort to establish clear regulatory frameworks for digital assets.

The timing comes as the Senate Banking Committee released a 278-page draft of the crypto market structure bill late Monday night. The legislation aims to clarify how federal agencies including the SEC and Commodities Futures Trading Commission will oversee cryptocurrency markets.

The bill addresses several contested issues that have stalled crypto regulation for years. One central provision prohibits digital asset service providers from paying interest or yield solely for holding payment stablecoins. However, the bill allows activity-based rewards and incentives tied to transactions.

This compromise follows weeks of negotiations between the crypto industry and banking lobby. Democratic Senator Angela Alsobrooks proposed the framework to protect community banks’ deposit-taking business model. Representatives from Coinbase viewed the compromise as a constructive solution to unlock stalled negotiations.

Defining Digital Assets and DeFi Protections

The Senate draft includes the “ancillary asset” classification previously introduced in earlier Banking Committee versions. The House of Representatives excluded this term from its own legislation, meaning the chambers will need to reconcile differences.

The bill states that network tokens currently part of exchange-traded funds would not be considered securities. This provision would effectively classify cryptocurrencies like XRP, Solana, and Chainlink as non-securities by default.

New provisions address decentralized finance oversight for the first time. The bill incorporates the Blockchain Regulatory Certainty Act from Senators Cynthia Lummis and Ron Wyden. DeFi developers indicated the protections appear weaker than earlier versions but were not eliminated entirely as traditional finance lobbyists had pushed for.

The legislation uses the GENIUS Act’s definition of digital asset service provider. This includes exchanges, custodians, and issuers under regulatory oversight.

Committee Action and Political Obstacles

The Senate Banking Committee plans to debate and vote on the bill Thursday. Senators have until Tuesday evening to file amendments. The Agriculture Committee postponed its markup until late January after initially scheduling it for the same day.

Three Democratic senators sent a letter to Banking Committee Chairman Tim Scott requesting more time to review the legislation. Senators Jack Reed, Tina Smith, and Chris Van Hollen argued that 48 hours to review the text and less than 24 hours to prepare amendments was insufficient.

Both committees must advance their respective versions before the full Senate can consider the legislation. A potential government shutdown looms if the House fails to pass spending bills by January 30.

The bill does not address ethics concerns raised by Democrats last fall regarding Trump family ties to multiple crypto businesses. Atkins said Monday that bringing crypto markets out of the regulatory gray zone remains the government’s most important task for investors.

The Senate Agriculture Committee stated it needs more time to finalize details and build support for the legislation before proceeding with its markup.

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