DeFi, Ethics Still Unsettled as Senate Sets Crypto Bill Vote for Jan. 15

TLDR

• The Senate Banking Committee will hold a markup vote on the crypto market structure bill on January 15.
• Key disputes remain unresolved between Republicans and Democrats regarding DeFi oversight and ethics provisions.
• The crypto industry has not fully endorsed the current draft due to concerns about DeFi and stablecoin yield treatment.
• Democrats have pushed for stronger ethics standards and a greater role for the Treasury Department in crypto regulation.
• Industry executives will visit Senate offices this week to advocate for favorable changes to the bill.

Senate lawmakers continue working on a bipartisan crypto market structure bill as key disagreements on DeFi and ethics remain unresolved. The Senate Banking Committee prepares for a markup vote on January 15, pushing toward formal legislative action. Committee Chairman Tim Scott confirmed that final negotiations are underway after over six months of drafting and revisions.

DeFi Treatment and Yield Concerns Unsettled

The bill’s treatment of decentralized finance (DeFi) remains under negotiation, with unresolved points around oversight and yield offerings. Industry executives have refrained from endorsing the current draft, citing unresolved DeFi language and reward-related provisions. According to Cody Carbone, CEO of the Digital Chamber, “There has been real, substantive, bipartisan progress on DeFi.”

However, lobbyists warn that failure to address DeFi oversight concerns could disrupt overall industry support for the bill. The legislation’s language on stablecoins offering yield also continues to be debated, creating further complications. These topics remain central in talks between Senate staff and crypto representatives.

Industry leaders will flood Senate offices on Thursday in a coordinated effort to influence remaining issues, including DeFi. Executives from Binance.US, Crypto.com, and other firms are expected to advocate for favorable market structures. This campaign aims to address any lingering concerns senators may have before the scheduled vote.

Ethics and Treasury Role Still Unresolved

Democrats continue to push for stronger ethics provisions, including issues linked to personal crypto interests of political figures. A document from Tuesday’s meeting shows some of their ethics demands remain pending despite various requests being granted. Discussions also continue over the Treasury Department’s enforcement role in crypto regulation.

Senator Elizabeth Warren remains in opposition, and her support is not expected even after the committee markup. Democratic negotiators, however, have influenced the draft, including provisions drawn from the House’s Clarity Act. These include anti-illicit finance clauses backed by the Treasury.

Despite progress, disagreements on ethics standards, money transmitters, and developer protections persist among negotiators. Committee Republicans express readiness for a vote, while Democrats have not publicly endorsed the timeline. Carbone stated the aim is to “keep the process moving” with engaged Democrats at the table.

Timeline and Markup Vote Pathway

Chairman Scott confirmed the committee will vote on the bill during a markup session scheduled for January 15. “We’ll have a vote on market structure,” Scott said in a Brietbart interview. “Multiple drafts were shared with every committee member.”

After the Banking Committee markup, the Senate Agriculture Committee must address its version due to shared jurisdiction. The Agriculture Committee, responsible for overseeing the Commodity Futures Trading Commission, has progressed slower but is expected to follow soon. Differences between the two versions will then be reconciled into a single Senate bill.

If the Senate approves the combined draft, it returns to the House, which previously passed the Clarity Act by wide margin. Lawmakers expect quick House approval, which would send the final legislation to former President Donald Trump for signing. However, that path depends on resolving key disputes during and after next week’s markup.

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