Republicans Present 'Closing Offer' as Crypto Bill Enters Critical Phase
Senate Banking Committee Chairman Tim Scott (R-S.C.) is accelerating efforts to advance the long-stalled crypto market structure legislation. According to POLITICO, Republican members of the committee 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 of the bill, which governs the legal classification of digital assets, and adds two new titles focusing on investor protections and combating illicit finance.
The proposal was signed by Scott and fellow GOP senators Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio). Lawmakers met Tuesday morning in Scott’s office to review the offer and discuss unresolved issues not addressed in the document. Per Punchbowl News, Scott is preparing to hold a markup on the crypto bill as early as next week. Senator John Kennedy (R-La.) told Punchbowl that the Senate Banking Committee is targeting Jan. 15 for the markup, though the committee would likely need to release an updated bill draft beforehand.
Democrats Push for Ethics Provisions and Regulatory Appointments
Democrats continue to press for concessions on several sticking points. These include demands for ethics provisions aimed at preventing elected officials—including members of the Trump family—from profiting from crypto businesses, as well as guarantees that Democrats are 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, momentum appears to be building. Sen. Catherine Cortez Masto (D-Nev.), a moderate Democrat on the Banking Committee involved in negotiations, said she 'definitely' expects a markup next week, describing talks as 'very productive' and open on both sides, per POLITICO. Still, it remains unclear whether a bipartisan deal can be finalized on Scott’s timeline.
Tight Legislative Calendar and Political Pressure
Lawmakers face a compressed calendar: a Jan. 30 federal spending deadline to avert a government shutdown looms, and mounting political pressure ahead of midterm elections adds urgency. 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. The outcome remains uncertain as both sides wrestle with the fundamental question of how to oversee the crypto industry.