- Senate Banking Committee Chairman Tim Scott is proposing a comprehensive bill to structure the US crypto market for markup in January 2026.
- The proposal aims to set clear legal boundaries, protect private investors and keep blockchain innovation within the US
- Lawmakers are negotiating high-impact issues including DeFi oversight, stablecoin rules, and regulatory splits.
Chairman Tim Scott has formally moved US regulation of digital assets into its most decisive phase yet. With a committee markup planned, Congress is now testing whether America can set clear crypto rules or risk losing the industry to overseas markets.
The Senate Banking Committee moves crypto regulation toward a tie-breaking vote
The US Senate Banking Committee is preparing to tighten sweeping legislation on the structure of the digital asset market, marking a turning point in Washington’s approach to crypto oversight.
Chairman Tim Scott confirmed that the bill is intended to establish firm legal boundaries while balancing innovation, investor protection and national security. According to the committee, the legislation focuses on protecting Main Street, preventing illegal activity and ensuring that crypto development remains anchored in the United States rather than migrating to more permissive jurisdictions.
This increase follows months of hearings, stakeholder consultations and bipartisan negotiations. Senate Republicans announced their first market structure principles in mid-2025, followed by two discussion drafts and a broad request for information from industry participants. The current version represents the most mature attempt yet to define how digital assets fit into U.S. financial law.
Read more: More than 110 crypto companies urge US Senate to ensure developer protections in marketplace bill
Why Market Structure Has Become Crypto’s Key Policy Battle
Market structure legislation goes far beyond simple compliance. The bill, in its minimal form, attempts to answer questions that the crypto industry has faced over the years:
- Which digital assets qualify as securities versus commodities?
- Which supervisor has authority over each category?
- How can exchanges, brokers and custodians legally operate across asset classes?
In the absence of legal clarification, companies have had to rely on their enforcement measures, piecemeal guidance and court decisions to interpret their duties. Accordingly, Chairman Scott argues that such uncertainty discourages investment and drives away innovation.
Clear rules would, in turn, unlock institutional buy-in, facilitate job creation, and minimize the legal risks that have stalled cryptocurrency adoption in the US.
Investor protection and national security at its core
According to the words of its supporters, this bill is not only pro-innovation, but also specifically defensive. The framework aims to provide retail investor protection, a higher level of transparency and mechanisms to reduce fraud. It also aims to curb the ability of foreign enemies or criminal gangs to use decentralized systems to launder money, avoid sanctions or commit crimes using computers.
In the commission’s eyes, it is safer to regulate crypto within the U.S. financial system, rather than allowing it to spiral out of control and become something that cannot be regulated. Such framing has led to both sides becoming interested in the idea, despite the ongoing dispute over the strictness of the final regulations.
Read more: Vietnam Launches Bold Regulation of Digital Assets with $379 Million Entry Bar and Crypto Pilot
Bipartisan support will determine the bill’s fate
The coming increase will serve as an early test of whether the legislation can gain real bipartisan support.
In a closely divided Senate, advancing a major bill typically requires the support of multiple Democratic senators. Previous crypto legislation has shown that coalitions between two parties are possible, but not guaranteed.
A strong vote in committee would significantly improve the bill’s chances of reaching the Senate and ultimately becoming law. However, a weak or partisan outcome could delay progress well into 2026, especially as electoral pressure mounts.
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