Senate Republicans Schedule Crypto Bill Vote Despite Divide on Key Issues

The Senate Banking Committee is set to vote on a key crypto market structure bill next week, despite ongoing debates over unresolved issues. Senate Banking Committee Chair Tim Scott has confirmed the vote for January 15, aiming to advance the highly anticipated legislation. This marks the most concrete step to date in the Senate's pursuit of cryptocurrency regulation since the enactment of federal rules governing stablecoins last summer.

The bill seeks to establish a regulatory framework for cryptocurrencies, which has been a priority for both pro-crypto Democrats and Republicans. However, the complexity of the bill has led to delays, with previous deadlines in July, October, and the end of 2025 all passing without action. Scott has remained firm on pushing for the vote, stating that it is important to get on record and vote. The legislation will need to pass the committee before moving to the Senate floor for a final vote.

Key sticking points in the bill include the regulation of decentralized finance (DeFi) and addressing potential conflicts of interest, particularly concerning President Donald Trump's involvement in the crypto industry. Trump and his family have been linked to several crypto ventures, including World Liberty Financial, a DeFi and stablecoin project. Democrats have raised concerns about these ties, while Republicans, such as Sen. John Kennedy, remain uncertain about their support.

Why Did This Happen?

The push for the bill follows months of negotiations between pro-crypto lawmakers, with the goal of establishing clear regulatory boundaries for the crypto industry. A bipartisan version of the bill has been under discussion, but significant compromises are still needed, particularly on DeFi regulation and conflict of interest provisions.

The bill also aims to clarify the jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with the introduction of a new term for "ancillary assets" to distinguish which cryptocurrencies are not securities. Despite these efforts, progress remains slow, with both parties needing to find common ground before the bill can move forward.

How Did Markets React?

The market has shown mixed reactions to the news of the upcoming vote. Some crypto advocates remain skeptical about the bill's chances of passing in 2026, given the political landscape and the approaching midterm elections. TD Cowen has warned that the bill may not pass until 2027, with final implementation potentially delayed until 2029. This projection is based on the uncertainty surrounding the election outcomes and the potential for a shift in the balance of power in Congress.

Investor sentiment also remains cautious. DeFi Technologies, a major player in the crypto space, has recently faced a securities fraud lawsuit, which has led to a decline in its stock price. Investors are watching closely to see how the regulatory environment will affect the industry and whether the upcoming vote will provide the clarity needed for market confidence according to reports.

What Are Analysts Watching Next?

Analysts are closely monitoring the next steps in the legislative process, particularly the potential for a bipartisan deal to be reached. Cody Carbone, CEO of The Digital Chamber, emphasized the importance of the markup session in finding the necessary compromises. The bill will need to be reconciled with legislation from the Senate Agriculture Committee, which has also drafted a version of the bill.

The potential for a government shutdown adds another layer of complexity, as lawmakers must finalize the bill before January 30, when current funding expires. Carbone noted that while a shutdown could pause progress, some work can still be done during that time to reconcile the different versions of the bill.

The outcome of the vote will have significant implications for the crypto industry, including the regulation of DeFi, the role of federal agencies, and the broader market structure for digital assets. As the bill moves forward, both supporters and critics will be watching to see whether the legislation can pass in 2026 or whether it will face further delays into 2027.

The Senate Banking Committee's vote on January 15 represents a crucial step in the legislative process. While the bill may not have widespread bipartisan support, the vote could set the stage for further negotiations and potentially pave the way for a final bill to be considered on the Senate floor. The coming weeks will be decisive for the future of crypto regulation in the United States.