Bitcoin News Today: Senate Crypto Bill Advances Amid Partisan Rifts and Conflict Scrutiny

The U.S. Senate Banking Committee is poised to advance the long-stalled Cryptocurrency Market Structure Bill, with Chairman Tim Scott announcing plans to push for a vote in late 2025. Speaking on November 19, Scott emphasized the legislation's dual importance for consumer protection and reinforcing America's economic leadership in the digital asset space according to a recent report. The bill, which requires approval from both the Senate Banking Committee and the Agriculture Committee, aims to establish a regulatory framework for crypto markets, bridging gaps in securities and commodities oversight. However, partisan divides and unresolved concerns about presidential conflicts of interest have complicated its path to enactment.

Democrats, including Sens. Elizabeth Warren and Tina Smith, have repeatedly criticized the bill's potential to entrench conflicts involving President Donald Trump's crypto ventures. Warren has spearheaded calls for stricter scrutiny of governance tokens linked to entities like World Liberty Financial (WLFI), which face allegations of facilitating transactions with North Korea and Russia. Meanwhile, the Trump administration has advocated for a more lenient approach, as seen in the recently enacted GENIUS Act, which provides a regulatory framework for stablecoins. The Senate's bipartisan negotiations on the market structure bill remain contentious, with lawmakers balancing industry demands for clarity against concerns over national security.

Regulatory clarity is also emerging in other areas. The Office of the Comptroller of the Currency (OCC) recently clarified that national banks can hold cryptocurrencies to cover blockchain network fees, expanding their ability to engage with digital assets under the GENIUS Act. This guidance aligns with broader efforts to reduce regulatory burdens on financial institutions, though implementation of the stablecoin law remains months away due to pending Treasury and Federal Reserve rulemaking.

Tax policy debates further complicate the legislative landscape. Senator Todd Young (R-IN) has urged the IRS to reconsider its 2023 guidelines, which tax crypto staking rewards at the time of receipt rather than sale. Young argued the current framework creates unnecessary complexity and risks undermining future regulatory efforts. The IRS, under Acting Commissioner Scott Bessent, has yet to commit to revising the rules, with Democratic lawmakers defending the status quo as consistent with traditional tax principles.

Market participants and industry advocates are cautiously optimistic. Jeff Park of ProCap BTC highlighted that the proposed bill's shift of regulatory authority from the SEC to the CFTC could spur innovation in decentralized finance (DeFi) by aligning oversight with crypto's commodity-like nature. Uniswap's recent activation of a fee-switching feature, long delayed due to regulatory uncertainty, underscores the potential for new developments as clarity emerges. Meanwhile, Square's expansion of Bitcoin payment options has reignited discussions about the practicality of using BTC for everyday transactions, with Park cautioning against micro-transactions while emphasizing its value in larger purchases.