Senate Crypto Market Structure Bill Heads to January Markup Amid Amendment Surge and Surveillance Warnings

Lawmakers Push Forward as Industry Flags Oversight Risks and Multi-Year Rulemaking Timeline

TL;DR

• Senate committees set late-January markups for a sweeping crypto market structure bill, with more than 130 amendments in play.
• Industry groups warn the draft could significantly expand U.S. Treasury surveillance powers and restrict stablecoin yield.
• Even if passed, experts expect years of regulatory rulemaking before full implementation.

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Senate lawmakers are preparing to move forward with a long-awaited crypto market structure bill, scheduling key committee markups for late January after months of delays and behind-the-scenes negotiations. The Senate Agriculture Committee plans to hold its markup on January 27, with bill text expected days earlier, marking a critical step toward defining federal oversight of digital asset markets.

The Agriculture Committee’s role is central because it oversees the Commodity Futures Trading Commission, which would gain clearer authority over large segments of spot crypto markets under the proposal. Parallel work is unfolding at the Senate Banking Committee, where lawmakers have filed roughly 137 amendments ahead of their own markup, underscoring how contested the legislation remains across party lines.

Debate has intensified around provisions affecting stablecoins, particularly language that would prohibit interest or passive yield simply for holding dollar-pegged tokens. The draft allows rewards tied to specific activities, but critics argue the restriction favors traditional banks and could reshape competition across payments, lending, and settlement rails that influence crypto price dynamics and the broader coin market cap.

Industry leaders have also raised alarms about expanded surveillance authority embedded in the bill. Galaxy Digital warned that certain sections would grant the U.S. Treasury Department powers comparable to those introduced after 2001, enabling broad designations of high-risk jurisdictions, entities, or transaction types across crypto networks, with potential implications for privacy and cross-border activity.

Policy analysts caution that passage would not mean immediate clarity. Paradigm estimates the legislation would trigger around 45 separate rulemakings across multiple agencies, a process that could stretch over several years. Historical comparisons to post-crisis financial reforms suggest markets may operate under interim uncertainty long after the bill becomes law.

Political uncertainty remains high despite bipartisan acknowledgment that clearer rules are needed. Senate negotiations continue to balance consumer protection, innovation, and enforcement reach, while market participants watch closely for signals that could affect investment sentiment, crypto price index movements, and long-term valuation across the digital asset sector.

This article has been refined and enhanced by ChatGPT.