WASHINGTON, D.C. Tim Scott (R-SC), Chairman of the Senate Banking Committee, this week announced that the Senate intends to move a comprehensive crypto market structure bill through committee by December, setting the stage for fuller debate on the Senate floor in early 2026.
Scott stated that the legislation would address long-standing ambiguity around which federal regulator oversees digital assets, how crypto trading platforms should be supervised, and how to integrate nascent decentralised finance (DeFi) markets into the existing financial system. His comments arrive after the House passed the Digital Asset Market Clarity Act (CLARITY Act) earlier this summer, and as the Senate’s own versions of the legislation drafted by the Banking and Agriculture Committees are nearing key mark-up stages.
Industry analysts believe the announcement signals an important milestone: Americans may soon have a clearer regulatory framework for cryptocurrencies. The bill aims to define “digital assets” under law, assign regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and establish rules for exchanges, brokers, and decentralised platforms.
However, despite the momentum, significant hurdles remain. The Senate Agriculture Committee’s draft legislation still contains bracketed provisions on DeFi and other sectors that lack consensus. Timelines are tight: staffers aim for committee mark-ups by December before the end-of-year congressional calendar closes.
If the bill clears committee and is placed on the Senate floor, it will still need bipartisan support, and may require reconciliation with the House version. Passage this Congress is possible but not guaranteed.
Why this matters
For months, crypto industry stakeholders have cited regulatory uncertainty in the U.S. as a barrier to growth. Without a definitive law, many firms operate in a patchwork of SEC enforcement, CFTC guidance, and state-level rules. A successful market-structure bill could reduce legal uncertainty, standardise oversight, and encourage both innovation and investor protections.
On consumer protection, the legislation would likely introduce disclosure obligations, registration regimes for digital-asset platforms, and stronger anti-money-laundering (AML) standards specific to crypto. According to legal commentary, one version of the bill would classify many tokens as either securities or commodities and offer clearer registration routes.
On the innovation front, proponents view the bill as an opportunity for the U.S. to remain competitive globally in the digital-asset industry. As regulatory cracks appear in jurisdictions abroad, many American firms are waiting for clearer rules before scaling operations.
But what could derail it?
Political divisions over how to treat decentralised finance remain a sticking point. While Republicans favour clarity and innovation, some Democratic lawmakers and watchdog groups argue the bill must include stronger safeguards against illicit finance, consumer harm, and systemic risk. The legislative calendar itself presents a challenge: year-end deadlines, recesses, and competing priorities could push the bill into 2026.
Looking ahead
If the Senate succeeds in marking up the bill in December, hearings would follow, revisions may be made, and the text could then be combined with other bills before a floor vote. Stakeholders will be watching closely for how DeFi is regulated, how oversight is divided between the SEC and CFTC, and whether the final law provides “safe harbour” or relief for industry participants who’ve operated in a regulatory grey zone.
In short: yes, this could be the step that finally brings clearer U.S. crypto rules but several critical steps remain before that clarity becomes law.
FAQs
Q1: What is the crypto market structure bill that Senator Tim Scott is referencing?
The bill is a Senate draft aimed at defining digital asset regulation in the U.S., clarifying oversight between the SEC and CFTC, creating rules for crypto trading platforms, and integrating DeFi under federal supervision.
Q2: When is the Senate expected to act on this legislation?
Senator Scott stated the Banking Committee aims to mark up the bill in December, with the intention of moving it to the Senate floor early next year.
Q3: Why is this legislation significant for the crypto industry?
Because U.S. crypto regulation has been fragmented and uncertain, the bill promises to bring a unified, federal framework that could reduce compliance risk, unlock investment, and offer clearer rules for innovation.
Q4: What are the main sticking points in the negotiations?
Key issues include how decentralised finance (DeFi) will be regulated, the jurisdictional split between the SEC and CFTC, consumer protection standards, and how broadly tokens will be defined under the law.
Q5: Does passage of this bill mean crypto firms are safe from regulation?
No. Instead of removing regulation, the bill aims to provide clearer and consistent regulation. Firms will still be required to comply with registration, oversight, AML, and other obligations under the new law.
Q6: If the Senate passes the bill, what happens next?
After Senate passage, the bill may need reconciliation with the House version of crypto legislation. If both chambers agree, it can be sent to the President for signature and then become law.