The Chairman of the U.S. Senate Banking Committee, Tim Scott, revealed plans for a crucial cryptocurrency market structure bill to be voted on in the committees by December and targeted to reach the Senate floor in early 2026. Emphasizing the significance of the legislation, Scott mentioned that President Donald Trump would be presented with the bill for approval. He highlighted that this regulatory framework is aimed at bolstering the nation’s global economic leadership in the coming century.
Republicans Seek Swifter Action
In an interview with Fox Business, Tim Scott discussed the potential for the bill to be voted on in both the Banking and Agriculture Committees by the year’s end. Once cleared, it would then advance to the full Senate floor. Scott accused Democrats of intentionally delaying the process, alleging that they are hindering Trump’s vision of making America the cryptocurrency capital of the world. He further underlined that the bill aims to provide protection not only for Republicans but also for American consumers.
Due to its impact on securities and commodity markets, the legislation needs approval from two separate committees. Republicans are focused on clearly delineating regulatory boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). They also aim to clarify which cryptocurrencies would not be considered securities under the new “ancillary asset” definition. However, gaining momentum in the Senate requires bipartisan support, particularly from Democrats.
Democratic Draft Sparks DeFi Concerns
The Senate is currently considering drafts from both parties, following the House of Representatives’ passage of the CLARITY Act during the summer. Recently, a leaked six-page draft from Democratic senators sparked concerns within the cryptocurrency industry, particularly focusing on decentralized finance (DeFi). This draft proposes that the Treasury Department and other financial authorities determine whether a person or entity exercises “control or decisive influence” in the DeFi ecosystem.
Industry representatives strongly criticized this approach, arguing it could effectively ban DeFi. In response to the leak, both Democrats and Republicans engaged in several meetings with industry leaders. Kristin Smith, President of the Solana Policy Institute, noted that some Democratic senators are “determined to finalize the bill,” indicating that Senate negotiations may accelerate before the year’s end.