Senator Tim Scott Seeks Democratic Support for U.S. Crypto Market Structure Bill

Senator Tim Scott (R-SC) has expressed confidence that a significant number of Democratic senators will cross the aisle to support the CLARITY Act, a proposed piece of legislation aimed at establishing a more coherent market structure for the U.S. cryptocurrency sector. Speaking at the Wyoming Blockchain Symposium in Jackson Hole, Scott highlighted his efforts to build bipartisan support, stating that he expects between 12 and 18 Democrats to be open to voting for the bill, despite its complexity and the forces working to oppose it [1]. This optimism comes after the passage of the GENIUS Act, which saw 18 Democrats support the stablecoin-focused legislation [2].

Scott, who chairs the Senate Banking Committee, outlined plans to pass the Senate version of the market structure bill before the end of September, a timeline contingent on legislative progress once Congress returns from its recess. A draft of the Senate’s proposed bill, titled the Responsible Financial Innovation Act, is expected to build upon the framework laid out in the CLARITY Act passed by the House on July 17 [3]. However, the Senate version may differ from its House counterpart, reflecting the ongoing negotiation process between the two chambers.

The political landscape remains challenging. Republicans hold a narrow three-seat majority in the Senate, meaning bipartisan cooperation is essential for the CLARITY Act to pass. This was underscored by recent developments, including a House procedural vote derailed by conservative Republicans over concerns with certain aspects of the legislation [4]. These events illustrate the delicate nature of navigating both party lines and ideological divisions within the broader crypto regulatory debate.

Not all Republican lawmakers have shown enthusiasm for the bill. Some remain skeptical about the influence of the crypto industry, particularly in light of high-profile political battles involving industry figures. Meanwhile, Democratic senators, including Elizabeth Warren, have called for regulatory oversight that limits the potential for market instability and corruption. Warren emphasized the need for regulation that is not written by the crypto industry itself [5].

Despite these hurdles, Scott has taken a strategic approach, reaching out to Democrats outside of the Banking Committee to provide political cover for those considering support. The outcome of these efforts could have long-term implications for the U.S. crypto market, potentially setting a precedent for clearer regulatory oversight and greater institutional participation.

[1] Cointelegraph, Sen. Tim Scott Sees Democrats Crossing Aisle on Crypto (https://cointelegraph.com/news/senate-banking-committee-chair-support-crypto-market-structure)

[2] TradingView, Key Republican senator expects Democratic support for ... (https://www.tradingview.com/news/cointelegraph:59af8c48f094b:0-key-republican-senator-expects-democratic-support-for-us-crypto-market-structure-bill/)

[3] Decrypt, Will Crypto Get Its Long-Awaited Market Structure Bill? Tim ... (https://decrypt.co/335833/will-crypto-get-long-awaited-market-structure-bill-tim-scott-says-vote-close)

[4] AOL.com, Hard-line conservatives tank procedural vote over crypto ... (https://www.aol.com/hardline-conservatives-tank-procedural-vote-185401172.html)

[5] Seeking Alpha, Politics And The Markets 08/19/25 (https://seekingalpha.com/article/4802970-politics-and-the-markets-081925)