The Senate crypto market structure bill is facing delays as Senator John Kennedy says the Senate isn’t ready to move by Tim Scott’s end-September timeline; lawmakers, banks, and industry experts warn more time is needed to resolve regulatory, compliance, and institutional-readiness gaps.
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Senate timeline stalled: key senators express doubts about readiness for sweeping crypto rules.
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Stablecoin progress (GENIUS Act) exists, but a market structure bill would be broader and more complex.
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Industry and experts cite bank readiness, compliance gaps, and bipartisan math as critical obstacles.
Crypto market structure bill faces delay as Senator Kennedy warns Senate not ready; read the latest analysis and what it means for policy and markets.
What is the Senate crypto market structure bill and why is it delayed?
The crypto market structure bill is proposed federal legislation to create comprehensive rules for digital assets across exchanges, institutional participants, and intermediaries. Senator John Kennedy said the Senate is not prepared to advance the bill by the end-September timeline, citing unanswered questions and institutional readiness concerns.
How did recent legislation influence this push?
The GENIUS Act, passed in July, established federal rules for dollar-pegged stablecoins and is widely seen as a partial step toward broader reform. The House-passed CLARITY Act provided another legislative blueprint, but senators warn that a full market structure bill would be far more sweeping and complex.
Why do experts say banks aren’t ready?
Industry experts, including Nitesh Mishra of ChaiDEX, point to gaps in risk management, compliance, and legacy technology that make rapid adoption risky for traditional banks. Central banks and large financial institutions often act cautiously to preserve financial stability.
What are the political math and stakeholder dynamics?
Senate Banking Chair Tim Scott estimated 12–18 Democrats might support the bill, fewer than supported the GENIUS Act. With Republicans holding a narrow majority, Tim Scott still needs bipartisan votes to pass sweeping rules, and Senator Kennedy’s reservations complicate GOP unity.
Frequently Asked Questions
Will the CLARITY Act affect the Senate bill?
The House’s CLARITY Act informs Senate debate by proposing definitions and guardrails, but the Senate bill aims to be more comprehensive. Lawmakers will reconcile differences through hearings and amendment processes.
How could delays affect industry planning?
Delays extend regulatory uncertainty for firms planning U.S. operations. Companies engaged in lobbying have emphasized the need for clear federal rules to support institutional participation and market growth.
Key Takeaways
- Delay likely: Senators, led by John Kennedy, indicate the Senate is not ready to meet Tim Scott’s end-September target.
- Complex scope: A full market structure bill would expand beyond the GENIUS Act’s focus on stablecoins to cover exchanges, custody, and market conduct.
- Actionable items: More hearings, regulatory coordination, and phased implementation can reduce risk and increase bipartisan support.
Conclusion
The crypto market structure bill remains unsettled as Senator John Kennedy and other lawmakers highlight unanswered questions on regulation, bank readiness, and bipartisan support. Policymakers face a choice between rushing a broad framework and extending deliberations to ensure robust, implementable rules—an outcome that will shape U.S. digital asset policy and market stability.
