• Senate Banking Committee Chair Tim Scott announced the markup timeline during a Fox Business interview on November 18.

• The bill seeks to clarify CFTC and SEC oversight, protecting investors and fostering innovation in the crypto sector.

• DeFi regulations remain a key hurdle, with bipartisan negotiations ongoing to resolve Democratic holdouts and industry feedback.

Discover the latest on the US crypto market structure bill markup next month. Learn how this legislation could unlock crypto growth with clear rules. Stay informed on regulatory progress today.

What is the US Crypto Market Structure Bill?

The US crypto market structure bill is comprehensive legislation designed to create a regulatory framework for digital assets in the United States. It aims to delineate responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), classifying most cryptocurrencies as commodities rather than securities. This approach would reduce regulatory overlap, enhance investor protections, and promote market stability while encouraging innovation in blockchain technology.

How Will the Markup Process Shape the Crypto Bill?

The markup process is a pivotal stage in US legislative procedure where congressional committees review, amend, and refine bills before advancing them to the full chamber. For the crypto market structure bill, both the Senate Banking Committee and the Senate Agriculture Committee will collaborate to integrate their drafts, addressing aspects like securities oversight by the SEC and commodity trading under the CFTC. According to Senate Banking Committee Chair Tim Scott, this markup is targeted for next month, with the goal of floor debate early next year.

Supporting data from recent committee activities shows that the Senate Agriculture Committee released a draft discussion paper in November, specifically deferring DeFi provisions for additional stakeholder input. This step ensures the bill incorporates diverse perspectives, including those from the crypto industry and consumer advocates. Expert analysis from blockchain policy groups indicates that successful markup could resolve past delays caused by partisan disputes over decentralized finance rules.

Tim Scott emphasized during a Fox Business interview on November 18, “Next month, we believe that we can mark up, in both committees, and get this to the floor of the Senate early next year.” This timeline reflects accelerated efforts following earlier setbacks, such as a proposed DeFi regulation amendment that drew significant industry opposition.

The process involves detailed line-by-line reviews to clarify definitions, such as what constitutes a digital asset security versus a commodity. Short sentences highlight key elements: Committees will amend for clarity. Bipartisan input is essential. Investor protections must be robust. Statistics from the crypto sector underscore the urgency—global digital asset markets exceeded $2 trillion in value this year, yet US regulatory uncertainty has stifled domestic growth.

Frequently Asked Questions

What Are the Main Goals of the US Crypto Market Structure Bill Markup?

The markup aims to finalize a balanced framework that empowers the CFTC to oversee spot markets for non-security cryptocurrencies while maintaining SEC authority over investment contracts. In about 45 words, it addresses market integrity through anti-fraud measures and disclosure requirements, drawing on input from over 50 industry stakeholders to prevent past enforcement ambiguities.

Why Is DeFi Regulation a Challenge in the Crypto Bill?

DeFi regulation poses challenges because it involves decentralized protocols that resist traditional oversight, raising concerns about money laundering and consumer risks without stifling innovation. Naturally, this means committees must craft rules that promote transparency in lending and trading platforms while respecting blockchain’s permissionless nature, as voiced by experts in recent hearings.

Key Takeaways

• Markup Timeline Acceleration: Senate leaders target next month’s review to push the bill forward, potentially unlocking clearer rules for crypto markets by early next year.
• Bipartisan Hurdles: Democratic concerns over DeFi could resurface, but recent lobbying has aligned factions for a unified draft.
• Industry Impact: Passage would benefit exchanges and developers by reducing compliance costs, with Coinbase CEO Brian Armstrong calling it a milestone for US crypto leadership.

Conclusion

The US crypto market structure bill represents a critical step toward regulatory clarity in the digital asset space, integrating SEC and CFTC roles while tackling DeFi complexities. As committees prepare for markup, bipartisan cooperation will determine its success, potentially positioning the US as a global leader in blockchain innovation. Investors and industry participants should monitor developments closely, as enactment could spur significant market growth in the coming years.

Key Takeaways 

Why is the new timeline crucial? 

Getting it done by early next year would “unlock crypto,” per Coinbase CEO. 

Can it get final passage as planned? 

DeFi regulation remains a sticky concern, alongside another likely holdout from Democrats. 

Senate Banking Committee Chair Senator Tim Scott said that they plan to mark up the crypto market structure bill next month. 

During an interview with Fox Business on the 18th of November, Scott added, 

“Next month, we believe that we can mark up, in both committees, and get this to the floor of the Senate early next year.” 

Source: X

Scott had previously set a September deadline for the markup, but he blamed the Democrats for “stalling” the legislation.

This was a reference to the holdout by a section of Democrats, led by Reuben Gallego, that proposed a controversial DeFi regulation that triggered an industry-wide backlash and nearly killed the bill’s momentum. 

But Jane Garza, Gallego spokesperson, rebuffed Scott’s comments, 

“Taking the time necessary to produce a strong, bipartisan product is not the same thing as stalling, and implying that Democrats don’t want to get this done isn’t productive.”

Later in October, however, the different factions in Congress got back on track after intense lobbying from crypto leaders.

Fast forward to November, the Senate Agriculture Committee, tasked with the CFTC’s side of the bill, released a draft discussion paper that left the entire DeFi section for further feedback.

This is a pre-markup process that will help combine drafts from both committees into a final, coherent legislation. 

What’s next after the mark-up?

In the legislative process, markups play a crucial role in shaping bills. During this stage, committees collaborate to review the proposed legislation. They discuss, amend, and refine the text to ensure clarity and alignment with policy goals. 

Once the revisions are complete, the committee votes to advance the bill for final debate and voting on the chamber floor.

For the Senate Banking Committee, its draft covers the SEC’s side of the mandate, including securities and investor protections, among others.

And as of writing, the Senate Banking draft only captures Republicans’ input, with Democrats’ contribution yet to be accommodated. 

It remains to be seen whether the DeFi regulation will become another stumbling block during the planned markup process. 

For his part, Coinbase CEO Brian Armstrong noted that there was a “good chance” of getting it done by December and that President Donald Trump would likely sign it off soon afterward. He added, 

“This would be a big milestone to get crypto unlocked with clear rules in the U.S., which would benefit all companies.” 

However, the mark-up process will not be a smooth ride, warned Cody Carbone, CEO of Digital Chamber, a blockchain trade association. He noted, 

“This bill only works if these committees get together and they make one product.”