Key Takeaways
Why is the new timeline crucial?
Getting it done by early next year would “unlock crypto,” per Coinbase CEO.
Can it get final passage as planned?
DeFi regulation remains a sticky concern, alongside another likely holdout from Democrats.
Senate Banking Committee Chair Senator Tim Scott said that they plan to mark up the crypto market structure bill next month.
During an interview with Fox Business on the 18th of November, Scott added,
“Next month, we believe that we can mark up, in both committees, and get this to the floor of the Senate early next year.”
Source: X
Scott had previously set a September deadline for the markup, but he blamed the Democrats for “stalling” the legislation.
This was a reference to the holdout by a section of Democrats, led by Reuben Gallego, that proposed a controversial DeFi regulation that triggered an industry-wide backlash and nearly killed the bill’s momentum.
But Jane Garza, Gallego spokesperson, rebuffed Scott’s comments,
“Taking the time necessary to produce a strong, bipartisan product is not the same thing as stalling, and implying that Democrats don’t want to get this done isn’t productive.”
Later in October, however, the different factions in Congress got back on track after intense lobbying from crypto leaders.
Fast forward to November, the Senate Agriculture Committee, tasked with the CFTC’s side of the bill, released a draft discussion paper that left the entire DeFi section for further feedback.
This is a pre-markup process that will help combine drafts from both committees into a final, coherent legislation.
What’s next after the mark-up?
In the legislative process, markups play a crucial role in shaping bills. During this stage, committees collaborate to review the proposed legislation. They discuss, amend, and refine the text to ensure clarity and alignment with policy goals.
Once the revisions are complete, the committee votes to advance the bill for final debate and voting on the chamber floor.
For the Senate Banking Committee, its draft covers the SEC’s side of the mandate, including securities and investor protections, among others.
And as of writing, the Senate Banking draft only captures Republicans’ input, with Democrats’ contribution yet to be accommodated.
It remains to be seen whether the DeFi regulation will become another stumbling block during the planned markup process.
For his part, Coinbase CEO Brian Armstrong noted that there was a “good chance” of getting it done by December and that President Donald Trump would likely sign it off soon afterward. He added,
“This would be a big milestone to get crypto unlocked with clear rules in the U.S., which would benefit all companies.”
However, the mark-up process will not be a smooth ride, warned Cody Carbone, CEO of Digital Chamber, a blockchain trade association. He noted,
“This bill only works if these committees get together and they make one product.”
