As the year steadily advances, a sense of urgency envelops the U.S. Senate as lawmakers strive to finalize a comprehensive crypto market structure bill. Despite missing the September 30 deadline initially set by Senate Banking Committee Chairman Tim Scott, senators remain optimistic about passing the legislation by the year’s end. This optimism was echoed at CoinDesk’s Policy and Regulation event in Washington, D.C., where key senators expressed their commitment to the cause despite the legislative hurdles.
A Delicate Balancing Act
Senator Kirsten Gillibrand (D-N.Y.) emphasized the complexities surrounding the bill’s timing, highlighting the broader fiscal challenges Congress faces. “We’re in the middle of negotiations about whether we’re going to have a bipartisan budget, so the most important issue that Congress has to deal with right now is the fiscal cliff,” Gillibrand noted. Her remarks underscore the intricate balancing act lawmakers must perform, juggling multiple pressing issues while keeping the crypto bill in sight.
In a political landscape where deadlines often shift, the goalposts for the crypto bill have moved several times. Initially, it was President Donald Trump who set an optimistic August deadline for congressional crypto efforts. That timeline slipped to the end of September, and now the end of the calendar year is the new target. However, this doesn’t diminish the senators’ resolve to see the job through.
Realistic Expectations
Republican Senator Cynthia Lummis of Wyoming, who chairs the panel’s crypto subcommittee, reiterated the importance of completing the Banking Committee’s work by the end of September. Yet, she acknowledged that the Senate Agriculture Committee, which also plays a crucial role, will need additional time, possibly pushing discussions into October. “It’s like being pregnant for four years, you know. Please, let it happen,” Lummis humorously remarked, capturing the anticipation and longing for a resolution.
While Thanksgiving was previously floated as a target, Lummis conceded that might be overly optimistic. Despite these challenges, she’s determined to see the bill finalized by the end of the year, underscoring the legislative resolve to provide clarity and structure to the burgeoning crypto industry.
Ethics in Focus
As the bill takes shape, ethical considerations have emerged as a significant point of discussion. A group of Senate Democrats has outlined priorities they wish to see in the bill, such as consumer protections and delineation of regulatory jurisdictions. A notable proposal is to bar lawmakers, including the president and vice president’s families, from profiting off crypto projects, ensuring no conflicts of interest.
Gillibrand stressed the importance of incorporating an ethics component to prevent any appearance of self-dealing or breaches of the Emoluments Clause, stating, “I think it’s important to have this lens of ethics. It’s something that really undermines the entire industry.” However, she acknowledged that negotiations are still fluid, with no firm “line in the sand” on ethical provisions at this stage.
Lummis offered a counterpoint, suggesting that any restrictions on crypto trading by elected officials might be better addressed as a separate initiative. She argued that cryptocurrencies shouldn’t receive distinct treatment compared to other investments. “I think that we’re going to have to have a dialogue with Democrats who are concerned about this president and future presidents’ participation,” she remarked, advocating for a broader conversation on the issue.
A Bipartisan Endeavor
Despite the differences in approach, there’s a shared understanding among lawmakers that the crypto market structure bill must be a bipartisan effort. Gillibrand highlighted the potential for collaboration, noting that while Democrats and Republicans might have varying perspectives on specific issues like decentralized finance and consumer protections, there’s room for consensus.
The coming months will be crucial as the Senate navigates the complex landscape of crypto regulation. As lawmakers continue their negotiations, the hope is to establish a framework that fosters innovation while safeguarding consumer interests and maintaining ethical standards. With the end of the year fast approaching, the Senate’s resolve will be put to the test as they work towards a landmark piece of legislation that could shape the future of the crypto industry.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
