Crypto Industry Stakeholders Converge on Capitol Hill to Address Market Structure Bill

Cryptocurrency industry representatives have converged in Washington, D.C., this week to address the U.S. crypto market structure bill ahead of a key markup scheduled for early January. The event, organized by the Digital Chamber, brings together more than 50 companies across the digital asset ecosystem, including exchanges, banks, and DeFi protocols.

The bill, also known as the Responsible Financial Innovation Act (RFIA), aims to clarify how digital assets will be regulated, establish oversight between the SEC and CFTC, and define which tokens fall outside the scope of securities law. It is seen as one of the most significant legislative efforts in the U.S. crypto space in years.

Lawmakers are preparing for markups in both the Senate Banking Committee and the Senate Agriculture Committee. Both committees are expected to vote on the bill in early January, with the full Senate potentially considering it before the end of the month.

Why Did This Happen?

The industry's involvement in the markup process reflects the high stakes of the legislation. The bill could reshape how digital assets are regulated and traded in the U.S., particularly by granting the CFTC more authority over digital commodity markets. This shift could reduce the SEC's dominance in the sector, which has been the case for most of the past decade.

A major point of contention in the bill is how DeFi activities will be treated under U.S. securities and anti-money laundering (AML) laws. While the CLARITY Act, which passed the House, includes a carve-out for certain DeFi activities, the Senate version still requires further clarification.

What Are Analysts Watching Next?

Analysts are closely watching how the bill is finalized, particularly regarding DeFi and state preemption. The CLARITY Act includes a provision that would treat digital commodities as covered securities, effectively limiting the ability of states to impose their own regulations. This could streamline the regulatory landscape for crypto firms but may also reduce the role of state-level enforcement in protecting retail investors.

Political considerations also loom large. The 2026 midterm elections could impact the bill's timeline, as lawmakers begin to focus on re-election campaigns. Some analysts believe the bill could be delayed until 2027, with full implementation possibly not occurring until 2029.

Senate Democrats, in particular, are cautious about passing the bill before the midterms. They are also concerned about conflict-of-interest provisions that would limit senior government officials from holding cryptocurrency while in office. These provisions have drawn attention due to their implications for Donald Trump, who has strong ties to the crypto industry.

What Could Happen Next?

Despite the uncertainties, industry advocates remain optimistic. The SEC, now composed entirely of Republican commissioners, is expected to move forward with pro-crypto rulemaking in 2026. This includes clarifying policies on staking, custody, and the classification of digital assets.

Institutional interest in digital assets is also growing. Digital Asset Treasuries (DATs) are emerging as a new investment vehicle, allowing corporations to hold and manage crypto assets directly on their balance sheets. This trend is expected to increase demand for Ethereum and other major crypto assets.

The success of the market structure bill and broader regulatory clarity could help attract more institutional capital to the crypto market. This, in turn, could lead to greater price stability and long-term adoption.

As lawmakers prepare for the markup process, the focus remains on balancing regulatory oversight with innovation. The outcome will have far-reaching implications for the future of digital assets in the U.S.