US Bipartisan Talks on Crypto Market Structure Bill Gain Momentum as Democrats Push for DeFi Compliance

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U.S. senators resumed discussions on a comprehensive crypto market structure bill on January 6, 2026. The bipartisan talks aim to establish a regulatory framework for digital assets after previous negotiations failed to produce a finalized bill in 2025. Senator Tim Scott, chair of the Senate Banking Committee, has pushed for a markup vote as early as January 15.

Democrats have emphasized the need for front-end compliance in DeFi platforms to ensure alignment with sanctions rules. They also support expanded authority for the Treasury Department and new investor protections for crypto ATMs and consumer safeguards. These provisions are seen as critical to addressing regulatory gaps and ensuring market integrity.

Unresolved issues remain a significant hurdle for the bill's passage. Discussions continue on how to regulate stablecoin yields and address conflicts of interest, particularly concerning high-level government officials. These points have been contentious in past negotiations and could delay finalizing the legislation.

Why Did This Happen?

The renewed talks come amid growing pressure from both industry and political stakeholders. The House has already passed its own version of the bill, known as the Digital Asset Market Clarity Act, which has set the stage for Senate action. Additionally, the looming January 30 deadline to avoid a government shutdown has increased urgency among lawmakers.

Senate Republicans, led by Scott, have accelerated the timeline for a markup vote despite ongoing disagreements with Democrats. This move has raised concerns among some industry stakeholders that the bill may be voted on without sufficient consensus.

How Did Markets React?

Goldman Sachs has highlighted the potential impact of regulatory clarity on institutional adoption of crypto. The firm cited forthcoming legislation as a key catalyst for broader institutional involvement in digital assets, particularly in tokenization and DeFi infrastructure.

Market participants have closely watched recent developments in Washington. The potential passage of a market structure bill in the first half of 2026 could provide much-needed clarity for investors and businesses operating in the space.

What Are Analysts Watching Next?

Analysts are closely monitoring the timeline for negotiations and the likelihood of a bipartisan agreement. Galaxy Research Director Alex Thorn noted that a key document was drafted during a recent meeting, signaling progress but leaving major issues unresolved.

The outcome of the Senate's markup vote on January 15 will be a key test for the bill's viability. If the vote fails to produce a bipartisan measure, it could further delay legislative action and increase uncertainty in the market.

Meanwhile, legal developments involving DeFi Technologies Inc. (DEFT) have drawn attention from investors and legal firms. Multiple class action lawsuits have been filed over alleged securities fraud, with lead plaintiff deadlines set for January 30. These cases highlight the broader legal risks facing the crypto sector as regulatory frameworks evolve.

The next few weeks will be critical for the crypto bill and its potential impact on the market. Investors, regulators, and lawmakers are all watching closely as the legislative process moves forward.