Senator Tim Scott’s Announcement
Senator Tim Scott (R-SC), who chairs the influential Senate Banking Committee, revealed on Tuesday that a critical vote for the committee’s cryptocurrency market structure legislation will occur next week. This announcement raises eyebrows due to potential obstacles that could hinder the bill’s likelihood of passing in this legislative session.
Bipartisan Discussions and Legislative Challenges
For several months, bipartisan discussions have been ongoing as representatives from both parties, including pro-crypto Democrats and Republicans, work to negotiate the extensive language of this legislation, which aims to create a comprehensive regulatory framework for the majority of the U.S. cryptocurrency sector. Industry representatives have invested years and hundreds of millions in efforts to garner bipartisan support for this legislation in Washington, D.C.
However, the bill’s intricate nature has led Senate Democrats, along with a few Republicans who remain undecided, to hesitate at calls from both the White House and other stakeholders to push for a vote by a series of deadlines. Initial expectations for a vote by July or October slipped by without any decision, and even a target date of December 2025 was missed.
Upcoming Vote and Its Significance
Despite this challenging environment, Sen. Scott is reportedly committed to holding a markup vote on the bill by Thursday, January 15, indicating that he prioritizes getting the committee on record regarding their stance.
“It’s crucial for us to officially vote on this matter,” he mentioned in an interview with Breitbart. “So, next Thursday, we have a vote regarding market structure plans. We have put extensive effort over the past six months to ensure all committee members have access to various drafts of the legislation.”
This vote is particularly significant as it will ascertain whether the bill can advance out of the Senate Banking Committee, a crucial step before it can be debated on the Senate floor. Yet, uncertainty looms over whether a majority of committee members will back the measure in its current form.
Concerns from Crypto Lobbyists
Crypto lobbyists have expressed doubt regarding the bill’s chances this year, even without the pressure of an expedited voting timeline. Following Scott’s announcement, several leaders in the cryptocurrency space expressed their concerns about the rushing of this vote.
Scott Johnsson, a partner at Van Buren Capital and an influential voice on crypto policy, advised, “It may be best to postpone the markup until there’s a clearer bipartisan agreement to maximize the chances of a successful outcome.”
Negotiations and Unresolved Issues
On the same day, Senate negotiators from both parties, alongside White House representatives, convened to evaluate Republicans’ “final offer” regarding the bill’s content. A document detailing this ‘final offer’, which Politico acquired, indicates that several critical issues remain unresolved. These issues include potential conflict-of-interest rules affecting the president and members of Congress regarding their involvement in crypto; calls for modifications to existing stablecoin yield regulations desired by the banking sector; and the need for bipartisan support at federal financial regulatory bodies.
Notably, the document suggests that crucial items concerning the regulation of decentralized finance (DeFi) software require further discussion, including the Blockchain Regulatory Certainty Act and interpretive conditions under U.S. law defining illegal money transmission—issues that resonate deeply with both crypto advocates and Democrats focused on fiscal oversight and security.
Outlook for the Upcoming Vote
Salman Banaei, the general counsel at Plume, expressed skepticism regarding the outlook for next week’s vote in light of the ongoing impasse in negotiations.
“If the markup proceeds as planned and the negotiations have culminated in a GOP ‘closing offer’ to Democrats, the odds for a collaborative vote don’t look favorable,” he asserted.
