Senate Revives Crypto Market Structure Talks as Key January Deadline Nears

U.S. senators resumed discussions this week on a long-awaited crypto market structure bill aimed at defining how digital assets are regulated in the United States, according to sources familiar with the talks. While no agreements have yet been reached on major disputed issues, momentum is building as Senate leaders eye a possible committee markup as early as January 15.

The renewed negotiations come after months of stalled progress in the previous congressional session. Senator John Kennedy told Punchbowl News that Senate Banking Committee Chairman Tim Scott is preparing for a markup next week, a move that would require the release of an updated draft bill. The most recent version, however, was circulated several months ago, highlighting how much work remains before lawmakers can reach consensus.

The push to advance crypto legislation is happening amid a crowded and politically sensitive calendar. Congress is facing a January 30 deadline to pass a federal spending plan and avoid another government shutdown, while ongoing disputes over President Donald Trump’s foreign policy actions have added further strain. Despite these pressures, digital asset regulation remains a priority for both parties.

Key sticking points continue to divide Democratic and Republican negotiators. Democrats are advocating for stricter ethics rules that would prevent senior government officials from profiting from cryptocurrency activities, as well as tighter oversight of decentralized finance platforms and limits on crypto yield products. These proposals have raised concerns within the crypto industry, which fears that excessive restrictions could undermine innovation and competitiveness with traditional banks.

Industry dynamics are also shaping the debate. The banking sector is pushing to revive elements of last year’s GENIUS Act, particularly provisions that would prohibit crypto-related entities from offering yield on stablecoins. This issue has become a focal point of intense lobbying, as the final legislation could significantly alter the balance of power between banks and crypto firms.

With the House of Representatives already having passed its own Digital Asset Market Clarity Act, pressure is mounting on the Senate to act. The approaching midterm elections only add urgency, making the coming weeks critical for the future of U.S. crypto regulation.