Senate Crypto Market Structure Bill Edges Closer as Final Gaps Narrow

Republican senators convened Thursday to resolve the last remaining obstacles standing between the Digital Asset Market Clarity Act and a full Senate vote. The White House was expected to receive updated legislative language reflecting ongoing negotiations, though talks remain active and multiple issues still require resolution before the bill can reach President Donald Trump's desk.

One of the most contentious sticking points — how stablecoin yield programs should be treated under federal law — appears close to a resolution. Senator Cynthia Lummis has argued that stablecoin rewards structured around credit-card-style incentives, rather than traditional bank interest, could survive the final compromise language. Community bankers, who have pushed back on certain stablecoin structures, may also receive unrelated concessions tied to housing legislation to secure their support.

Lummis also noted that Coinbase CEO Brian Armstrong, whose earlier objections contributed to derailing a previous legislative push, has taken a more flexible stance in recent negotiations. The Senate Banking Committee must still advance the bill — a process Lummis predicted could wrap up by April — before it moves toward a final Senate-wide vote.

Decentralized finance policy and bipartisan demands from Democratic lawmakers present additional hurdles. Democrats are calling for restrictions that would bar senior officials and elected representatives, including Trump, from personally profiting off crypto holdings. They are also pushing for Democratic appointments to the Commodity Futures Trading Commission before the agency begins implementing new crypto rules. Both demands likely require White House involvement and are expected to be the last issues resolved.

Meanwhile, the Securities and Exchange Commission advanced its own crypto regulatory work this week, releasing a taxonomy of digital asset classifications. SEC Chairman Paul Atkins and Republican commissioners voiced support for congressional action, stating they are prepared to implement the CLARITY Act alongside CFTC leadership once the law is passed.