GOP's 'Closing Offer': Pushing the Crypto Market Structure Bill
Senate Republicans are intensifying their push for the long-stalled cryptocurrency market structure legislation. According to POLITICO, Banking Committee Chair Tim Scott (R-S.C.) sent a document Monday night to Democratic negotiators, described as a "closing offer and state of play." The document contains more than 30 revisions to Title I, which governs the legal classification of digital assets, and introduces two new titles focused on investor protections and combating illicit finance. The proposal was drafted by Scott along with Senators Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio). Scott held a bipartisan member meeting Tuesday morning and plans to hold a committee markup as early as next week. Senator John Kennedy (R-La.) told Punchbowl News that the committee is targeting Jan. 15 for the markup, though an updated bill draft would need to be released beforehand.
Democratic Sticking Points
Democrats continue to press for concessions on several contentious issues. Key demands include ethics provisions to prevent elected officials—including members of the Trump family—from profiting from crypto businesses, and guarantees that Democrats will be appointed to leadership roles at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Lawmakers are also debating whether crypto firms should be allowed to offer yield-bearing products that could compete with traditional banks. Despite these unresolved issues, Senator Catherine Cortez Masto (D-Nev.), a moderate Democrat on the Banking Committee, said she "definitely" expects a markup next week, describing talks as "very productive" and open on both sides. However, she acknowledged that a bipartisan deal remains uncertain.
Legislative Outlook and Time Pressure
Even with some momentum, it is unclear whether a bipartisan agreement can be finalized on Scott's timeline. Lawmakers face a compressed legislative calendar: a Jan. 30 federal spending deadline looms to avert a government shutdown, and midterm elections are adding political pressure. If Scott proceeds with a markup without Democratic buy-in, it could force negotiators to take public positions on a bill that has yet to bridge deep philosophical divides over regulation, enforcement authority, and decentralized finance (DeFi). The outcome will likely shape the future of U.S. crypto policy and may set precedents for how digital assets are regulated at the federal level.