A list of amendments — some of them far afield — is circulating for the planned markup hearing of the crypto market structure bill.
The Senate Agriculture Committee said Tuesday its postponed crypto market structure bill would drop on Jan. 21 and be debated six days later.
Government-ethics questions still hang over the U.S. Senate's plans to vote on the crypto market structure bill, and Warren is raising a related argument.
The crypto industry contends that Wall Street giants stood behind community banks to undercut digital competitors before they could get a major legislative win.
As the January 15 markup of the crypto market structure bill—known as the CLARITY Act—draws closer, reports indicate that Coinbase (COIN) is reconsidering its support for the legislation. A Monday report from Bloomberg suggests this shift in position is contingent on whether the anticipated bill includes provisions beyond enhanced disclosure requirements tied to stablecoin rewards. High Stakes For Coinbase The CLARITY Act is expected to be marked up in at least one Senate committee this Thursday, and Coinbase’s potential withdrawal could have significant implications for the bill. A source familiar with Coinbase’s stance told Bloomberg that the exchange would re-evaluate its support if the legislation veers too far from its interests, particularly regarding stablecoin incentives. Some insiders suggest the bill might restrict the ability to provide rewards to regulated financial institutions, a move that aligns with the banking sector’s concerns about losing deposits to crypto platforms. Related Reading: Dogecoin Breaks Its ‘Lower-Band Prison’ As Daily Trend Flips Coinbase currently holds applications for a national trust charter that could permit it to offer those kinds of rewards under regulatory rules. However, many crypto-native firms are pushing back against potential restrictions, arguing that such measures could disrupt competition in the market. The stakes for Coinbase are high, as rewards programs play a crucial role in its business model. The exchange allows users to earn 3.5% rewards on Circle’s USDC holdings. Should the market-structure bill include bans on these incentives, fewer users might choose to hold stablecoins on the platform. This could jeopardize an anticipated revenue stream projected at $1.3 billion in 2025, according to Bloomberg. Banking Vs. Crypto The GENIUS Act, passed into law in July of last year, prohibits stablecoin issuers from offering interest on token holdings, and does not prevent third-party partners like Coinbase from providing rewards tied to customer balances. The banking industry, however, argues that allowing exchanges to pay such rewards could negatively impact bank deposits and, consequently, community lending. As reported by Bitcoinist over the past month, the American Bankers Association (ABA) has voiced concerns that this situation could displace “billions” from local lending, allegedly harming small businesses and households. In contrast, Faryar Shirzad, Coinbase’s chief policy officer, has argued that maintaining rewards tied to stablecoins is crucial for preserving the dollar’s dominance, especially in light of China’s announcement to start offering interest on its digital yuan. Banking Lobby Fights Back A potential compromise being discussed would permit only licensed banking entities or financial institutions to provide rewards on stablecoin balances. Related Reading: Why The $2.9 Billion Bitcoin Whale Buy Could Spell Doom For The Market Recently, five crypto firms, including Ripple, Circle, and Paxos, received conditional approvals from the US Office of the Comptroller of the Currency (OCC) to become national trust banks, a move met with opposition from the banking lobby. If restrictions are indeed imposed, the report suggests that this could lead to creative workarounds as crypto firms seek alternative ways to reward customers. Featured image from DALL-E, chart from TradingView.com
In a major new development for the crypto industry, Senators Ron Wyden and Cynthia Lummis announced on Monday evening the introduction of a bipartisan, standalone version of the Blockchain Regulatory Certainty Act (BRCA). This legislation aims to provide much-needed clarity for software developers and infrastructure providers in the blockchain space, particularly concerning their classification under federal law. New Crypto Bill To Protect Blockchain Developers According to the detailed press release regarding the matter, the BRCA specifies that developers and providers who do not have control over user funds will not be classified as money transmitters. Senator Lummis highlighted the ongoing challenges faced by blockchain developers, stating: Blockchain developers who have simply written code and maintain open-source infrastructure have lived under threat of being classified as money transmitters for far too long. This designation makes no sense when they never touch, control, or have access to user funds, and unnecessarily limits innovation. Related Reading: Crucial Role Of The CLARITY Act In Avoiding A New October 10 Crypto Crash, Expert Explains Lummis emphasized that the bill provides developers with the clarity needed to advance digital finance without the fear of legal repercussions for activities that do not pose a money laundering risk. Lummis added, “It’s time to stop treating software developers like banks simply because they write code.” Senator Wyden echoed these concerns, arguing that imposing the same regulatory requirements on developers as those applied to exchanges or brokers is fundamentally flawed. Main Highlights Of The BRCA The Blockchain Regulatory Certainty Act aims to set clear federal standards defining when blockchain developers and service providers can be exempt from money transmitter regulations. Under current legislation toward crypto, the Senators assert blockchain developers face regulatory ambiguities that have not only stifled innovation but also driven many projects offshore, as they navigate conflicting regulations across different states. Related Reading: Dogecoin Breaks Its ‘Lower-Band Prison’ As Daily Trend Flips The bill specifically establishes that a “non-controlling developer or provider” refers to any entity that develops or maintains distributed ledger technology but does not possess the unilateral authority to initiate or execute transactions involving users’ digital assets without third-party consent. In addition, the crypto bill clarifies protected activities, including the development or publication of software for distributed ledgers, maintenance services for blockchain networks, offering customer self-custody solutions, and providing necessary infrastructure to support distributed ledger services. Importantly, while the bill allows states to enforce their laws consistent with federal regulations, it also prevents them from imposing money transmitter requirements on developers engaged solely in the specified protected activities. Featured image from DALL-E, chart from TradingView.com
There are red-line demands from decentralized finance — and backed by the rest of crypto — that remain unknowns as senators finish the draft they'll vote on.
The organization established by Coinbase to mobilize crypto enthusiasts has built up a 2.6-million-member base across 50 state chapters as U.S. elections loom.
Though consequential Senate committee votes may be coming, the talks over the bill's language haven't yet satisfied fundamental requests from Democrats.
The Senate is approaching a potential markup that may advance crypto legislation to a vote, and industry insiders are amassing for a lobbying push this week.
Senators met to restart the high-stakes negotiation over the crypto market structure bill, and one of them reportedly said a markup is planned next week.
After holiday leadership shifts, the two U.S. markets regulators — the SEC and CFTC — are now run only by pro-crypto Republicans, with Congress still debating.
The most tireless advocate of digital assets issues in the U.S. Senate said she's grown too tired to keep at it, leaving her Republican seat in play next year.
Guessing the direction of Congress is akin to long-range weather prediction, with so many variables in play, and the industry's fate depends on a break in the storm.
Executives and lobbyists are attending a meeting today with Senator Tim Scott and others to hash out the ongoing talks over crypto's most important policy effort.
The Polish government reintroduced crypto legislation without changing a single period, after telling the president he needs to sign it to avoid Russian-linked security threats.
Political progressives have joined forces to oppose current versions of the industry-backed legislative effort in the Senate.
Senators engaged in bipartisan discussions regarding the anticipated crypto market structure bill met on Tuesday amid ongoing disagreements about the timing of a committee vote on the legislation. According to a report from Politico, Sen. Cynthia Lummis, a key negotiator for the Republican side, expressed optimism that a new draft of the bill could be released this week. Lummis aims to have the bill ready for markup before Congress adjourns for the holiday break, stating, “Knock on wood, I hope to share a draft at the end of this week that reflects our best efforts to date.” Lummis Urges Swift Progress On Crypto Legislation During a panel discussion hosted by the Blockchain Association, Sen. Lummis emphasized the urgency of progressing with the legislation. She remarked that it might be advantageous for lawmakers to finalize a product and proceed with the markup next week, allowing everyone to take a break for the Christmas holidays. In related developments, Politico reported that Senate Banking Republicans submitted a proposal to their Democratic counterparts last week, suggesting over 30 amendments to a previous draft of the legislation. Related Reading: Did 2025 Mark A Bear Market For Bitcoin? Predictions Point To A $150,000 Rally In 2026 The three-page document, which comes from GOP senators on the Banking Committee, seeks to maintain certain elements of the original bill while incorporating adjustments acceptable to Democratic lawmakers. Senate Banking Committee Chair Tim Scott and other Republicans are eager to finalize the markup next week, although some Democrats have expressed skepticism about this ambitious timeline. Following a meeting on Monday, Democrats sent a response to the GOP offer, but details of their feedback remain unclear. Concessions In GOP’s Proposal The GOP’s proposal outlines the aspects from a September crypto market structure framework that they agree to integrate into a bipartisan bill, hoping to reconcile differences with their Democratic colleagues. The proposal includes a two-column table delineating 38 concessions the Republicans are willing to make, in exchange for retaining or modifying 32 sections of the original Responsible Financial Innovation Act discussion draft. Related Reading: Bitcoin Sees Largest Annual Exchange Drop: Over 400,000 Coins Gone Among the concessions is language that reflects White House approval, which could address Democratic concerns regarding appointments to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Additionally, the proposal contains ethics provisions aimed at addressing scrutiny over the Trump family’s business connections in the crypto sector. However, Lummis noted a previous ethics proposal she negotiated with Sen. Ruben Gallego was rejected by the White House, and she plans to collaborate further with Democrats to revisit the issue. Other notable concessions from the Republicans include a section on consumer protection standards for digital assets, proposed language regarding bankruptcy, the establishment of a federal baseline for crypto ATMs, and risk management standards for digital asset intermediaries. Featured image from DALL-E, chart from TradingView.com
The incoming policy chief arrives as the crypto industry seeks to influence the market structure bill in Congress, including its heavy DeFi implications.
The Blockchain Association's COO, Allie Page, is leaving to be the inaugural director of AIP, which is focused on educational events for decision makers.
The Australian government introduced digital assets legislation to modernize its financial system and safeguard consumers.
Rep. Warren Davidson introduced legislation that allows bitcoin tax payments without incurring capital gains to beef up the U.S. Strategic Bitcoin Reserve.
Industry groups signed a letter to President Donald Trump calling for new tax policy and agency action on initiatives apart from Congress' market structure work.
Senator Elizabeth Warren is maintaining political heat on President Trump's World Liberty Financial business interests in a letter to the Treasury and DOJ.
In the realm of the so-called Howey Test to define investment contracts under SEC jurisdiction, Atkins says there should be a clearer path for crypto involvement.
The industry's staunch ally (and sometimes business partner) in the White House has brought a flood of drama, both good and bad.
Several top crypto executives met with senators to hash out next steps on moving forward with the bill that would regulate U.S. crypto markets.
The closure of the federal government isn't yet making a significant dent in the digital assets sector's interactions, but it's doing damage to long-term goals.
GOP lawmakers are scheduling a followup meeting with crypto CEOs after they meet this week with Senate Democrats on the market structure bill, sources say.
Some of the top digital assets execs are heading to a meeting this week with U.S. Senate Democrats to see about getting the market structure bill moving.