Senate Banking Committee Delays Markup Hearings on Crypto Regulation
The U.S. Senate Banking Committee has announced that it will postpone markup hearings regarding market structure legislation aimed at clarifying how federal regulators will oversee the cryptocurrency sector until next year. This decision means that the anticipated hearing, which many stakeholders were hoping would occur later this week, will not take place. A spokesperson for the committee confirmed on Monday that Chairman Tim Scott and Democratic members have made significant progress on the bill, but discussions are ongoing.
While this delay was somewhat expected, it represents a setback for the cryptocurrency industry, which had been eager to see a markup hearing as a sign of progress toward comprehensive legislation anticipated for 2025. The timeline for resuming negotiations in the new year remains uncertain. Congress is expected to prioritize funding the U.S. government upon returning from the holiday recess, with a critical funding bill set to expire on January 30. If a government shutdown is avoided, lawmakers will have limited time to concentrate on market structure issues before the midterm elections shift their focus.
Commitment to Bipartisanship in Crypto Legislation
Chairman Scott has emphasized from the beginning that the development of this legislation should be a bipartisan effort, according to the committee spokesperson. He has been actively engaged in constructive discussions aimed at creating a robust bipartisan measure that not only clarifies regulations for the digital asset sector but also positions the United States as a leader in the cryptocurrency space. The committee continues to negotiate and is hopeful for a markup in early 2026.
The proposed market structure bill seeks to outline the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating the cryptocurrency markets. It designates the CFTC as the primary regulator for spot markets in crypto and clarifies the application of securities laws to the industry. The Banking Committee, which oversees the SEC, has produced several drafts of the bill, while the Senate Agriculture Committee, responsible for the CFTC, has released one discussion draft and will also need to conduct its markup hearing.
Democratic Concerns and Regulatory Developments
Among the points of contention for Democrats are issues related to financial stability, market integrity, and ethical considerations—largely in response to former President Donald Trump’s various crypto-related ventures, which have significantly increased his family’s wealth.
Despite the postponement of the markup hearings, both the SEC and the CFTC are taking steps to foster a more accommodating regulatory environment for the crypto industry. The SEC has issued several staff statements and held roundtable discussions, including one on Monday, to explore how securities laws could be applied to different aspects of cryptocurrency. Meanwhile, the CFTC has begun allowing licensed institutions to participate in spot crypto trading and recently provided no-action relief to certain prediction market operators regarding specific data requirements.
Industry Perspectives on Legislative Delay
Not all stakeholders view this delay in a negative light. Lindsay Fraser, Chief Policy Officer at the Blockchain Association, has expressed that the postponement indicates strong bipartisan engagement rather than a decline in momentum. “The decision to push market structure legislation into next year highlights the substantial bipartisan efforts at play—not a diminishing drive. Lawmakers from both parties are diligently working through the details to ensure that the final framework is resilient, consumer-friendly, and promotes innovation, which requires time,” Fraser explained.
Fraser further remarked that the progress achieved in this congressional session places the industry in a favorable position to finalize the legislation in early 2026. Ji Hun Kim, CEO of the Crypto Council for Innovation, echoed this sentiment, praising the ongoing bipartisan work by lawmakers and their teams to address complex market structure issues. He stressed the importance of establishing a comprehensive regulatory framework, stating, “Creating a solid market structure is crucial for consumer protection and to ensure that innovation continues to thrive in the United States. We look forward to the next steps in early 2026 to complete this initiative.”
