The anticipated US crypto market structure bill, seen as a landmark piece of legislation following the GENIUS Act, is unlikely to pass this year as Senate Banking Committee Chair Tim Scott announced the postponement of a committee vote. Instead, discussions regarding the bill are expected to resume in early 2026.
Pushing Crypto Bill Discussions To Next Year
In a statement released on Monday, a spokesperson for Chair Scott, a South Carolina Republican, noted that the Senate Banking Committee is actively negotiating with its Democratic counterparts in pursuit of a bipartisan approach to digital asset market legislation.
“Chairman Scott and the Senate Banking Committee have made strong progress,” said spokesperson Jeff Naft, emphasizing the ongoing efforts to create a robust regulatory framework that would provide clarity for the crypto industry and position the US as a leader in the digital asset space.
The delay comes at a time when the committee has produced multiple draft versions of the bill. However, with Congress preparing to return from its holiday break, the immediate focus will shift to funding the federal government, as the current funding bill is set to expire on January 30.
The negotiations had intensified over the past week, with Republicans from the Banking Committee collaborating with Senate Democrats to find a workable compromise.
Democrats have advocated for additional time in discussions, reflecting concerns about various issues, including financial stability, market integrity, and ethical considerations.
In particular, the ethics concerns have been linked to President Donald Trump and his family’s crypto-related business dealings, which have reportedly increased their wealth.
Regulators Intensify Oversight Of Digital Assets
Despite the legislative stall, federal regulators are continuing to engage with the cryptocurrency sector. The Securities and Exchange Commission (SEC) has issued multiple staff statements and convened roundtable discussions to explore how existing securities laws apply within the crypto market.
In parallel, the Commodity Futures Trading Commission (CFTC) has begun allowing licensed institutions to engage in spot crypto trading and recently granted no-action relief to specific prediction market operators regarding data requirements.
Additionally, the Federal Deposit Insurance Corporation (FDIC) is set to take significant steps towards implementing the country’s stablecoin bill, or most commonly known as the GENIUS Act.
The FDIC board is expected to review a proposed rule that will outline approval requirements for banks issuing payment stablecoins through their subsidiaries, opening the proposal for public commentary and discussion.
Travis Hill, the FDIC chair nominee, who may be confirmed by the Senate as soon as this week, highlighted that the FDIC is are already working on establishing prudential standards for stablecoin issuers under FDIC supervision. These standards would cover areas such as capital requirements, reserves, and risk management.
Featured image from DALL-E, chart from TradingView.com
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