US Lawmakers Say Crypto Market Structure Bill Is 'Closer Than Ever' as Bipartisan Negotiations Continue

The US Senate is moving closer to finalizing a crypto market structure bill, with bipartisan negotiations advancing toward a potential vote. The proposed legislation, known as the Digital Asset Market Clarity Act, aims to establish clear regulatory oversight for the crypto market by defining the roles of the SEC and CFTC.

The bill has advanced to the Senate committee stage, with a markup scheduled for the Senate Banking Committee on January 15, 2026. However, the Agriculture Committee has delayed its hearing until January 27, citing the need for further negotiations.

Industry stakeholders and lawmakers remain engaged in finalizing details of the bill, including the classification of digital assets and the regulation of stablecoin yields. The outcome of these discussions will determine the bill's chances of gaining broad support before a final vote.

Why Did This Happen?

The crypto market structure bill is designed to resolve regulatory ambiguities that have long plagued the industry. By clearly defining the oversight roles of the SEC and CFTC, the bill aims to reduce overlap and provide a consistent framework for crypto markets.

The bill also seeks to clarify the treatment of stablecoins, particularly regarding the payment of interest to holders. It currently bans interest on stablecoins unless tied to specific user activities, a provision that has drawn criticism from some industry players.

Another key focus is the protection of non-custodial developers, who would not be subject to the same regulatory obligations as financial intermediaries. This is intended to encourage innovation while maintaining appropriate safeguards.

How Markets Responded

The crypto market has shown mixed reactions to the bill's progress. While some analysts view the legislation as a positive step toward regulatory clarity, others express concerns over potential restrictions, particularly for stablecoin yields and DeFi protocols.

Bitcoin and Ethereum prices fluctuated in early January as the bill's timeline remained uncertain. Institutional buying remained steady, with some investors anticipating that a finalized regulatory framework could attract additional capital into the market.

Coinbase, one of the largest crypto exchanges, recently withdrew its support for the bill, citing concerns over its impact on tokenized equities and DeFi. This move has raised questions about the bill's broader industry acceptance and its potential to advance without major stakeholders.

What Are Analysts Watching Next?

Market participants are closely monitoring the bill's progress through Senate committees and potential changes to its key provisions. The outcome of markup hearings will provide further clarity on the legislation's direction and whether it will gain bipartisan support.

Analysts are also watching how the bill addresses DeFi and stablecoin regulations. These issues remain central to the ongoing negotiations and could influence the bill's final form.

The rulemaking process is expected to be lengthy, even if the bill is passed and signed into law. Industry experts estimate that full implementation could take years, similar to past financial reforms like the Dodd-Frank Act.

Investors and industry stakeholders are advised to remain informed as the bill evolves. The final outcome could have significant implications for trading strategies, regulatory compliance, and the overall direction of the crypto market in the United States.