Senate Banking Committee Chair Tim Scott Aims For December Vote On Crypto Market Structure Bill

Senate Banking Committee Chair Tim Scott says that he is pushing to mark up a crypto market structure bill before the end of the year and get it to US President Donald Trump’s desk shortly thereafter. 

“Next month, we believe we can mark up in both committees and get this to the floor of the Senate early next year so that President Trump will sign the legislation making America the crypto capital of the world,” Scott said in a recent interview with Fox Business.

Senate Banking Committee Chair Tim Scott pushing for mark up in December (Source: Fox Business)

Scott added that the committee has been in talks with Democrats and is trying to negotiate to reach a deal. However, he accused the party’s senators of stalling efforts. 

Lawmakers Working On Their Own Drafts Of The Crypto Market Structure Bill

Earlier this year in July, the House passed the CLARITY Act, which outlines the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission’s (SEC) power to regulate the crypto market. 

The Senate has been working on its own draft bill. Republicans on the Senate Banking Committee released a discussion draft on their section of the bill in July. They also suggested that their proposed bill would merge with the CLARITY Act. 

Meanwhile, in December, the Senate Agriculture Committee released its own discussion draft on Nov. 10, which left much of the bill up for change. 

The Agriculture Committee has jurisdiction over the CFTC, while the Banking Committee oversees the SEC. The latter is also leading parts of the bill that are related to securities laws. 

Democrats Split Over Crypto Regulation

As US senators negotiate the bill’s language and debate its details, vocal crypto critic and Democratic Senator Elizabeth Warren continues to highlight President Trump’s conflict of interest given his family’s ties to the digital asset industry and his push for pro-crypto policy in the US. 

Recently, the Senator, alongside ally Senator Jack Reed, sent a letter to US Treasury Secretary Scott Bessent and Attorney General Pam Bondi requesting information on reports that the Trump-linked World Liberty Financial sold tokens to “North Korea, Russia, and other illicit actors.” 

According to the senators, those sales, as highlighted by Accountable.us, “raise serious questions about WLF’s due diligence policies or procedures, including whether its tokens or other products enable sanctions evasion, money laundering and terrorist financing.”

While Senator Warren’s resistance against crypto policy could stall progress further and spell disaster for the industry, a divide has started to form among Democrats in the Senate Banking Committee over crypto policy. 

While Warren maintains her stance that the industry is overly risky and the President’s involvement is a conflict of interest, other members continue to negotiate legislative language. 

Good Chance That Bill Mark Up Will Come In December, Says Coinbase CEO

Despite the resistance from Senator Warren and other Democrats, Coinbase CEO Brian Armstrong said in a video that was recently posted on X that he was in Washington, DC, and “pushing for market structure legislation.” He also noted that there has been “a lot of progress.” 

Armstrong says a lot of progress being made (Source: X)

“Senate banking is also working nights and weekends to get the next iteration of their text out, so we’ve got a good chance, I think, of a markup for this bill in December,” Armstrong said. 

“This would be a big milestone to get crypto unlocked with clear rules in the US, which would benefit all companies,” he added.

Next Steps For The CLARITY Act

The CLARITY Act is one of three major bills that the House passed in July after a 10-hour voting session. The other two acts are the GENIUS Act, which seeks to establish a regulatory framework for stablecoins, and the Anti-CBDC Surveillance Act, which bans central bank digital currencies. 

Since the Senate is working on its own version of the CLARITY Act, the bill will need to return to the House for final approval if it passes the Senate. Thereafter, it will have to be sent to Trump’s desk so that it can be signed into law. 

Currently, Republicans hold the majority in the Senate with 53 seats, while Democrats hold 47 seats. Any proposed legislation will need 60 votes to pass.