DeFi and ethical concerns are still unresolved in the Senate’s crypto legislation as the January 15 vote approaches

Senate Banking Committee Nears Bipartisan Crypto Bill Vote

The U.S. Senate Banking Committee is making progress toward a bipartisan agreement on new regulations for the cryptocurrency market, with a committee vote scheduled for next week, according to its chairman. Meanwhile, industry leaders are gearing up for a major lobbying effort in Senate offices this Thursday.

Republican members of the committee are optimistic that they are close to finalizing the long-debated legislation to establish a regulated crypto market in the United States. However, Democratic negotiators have not fully commented on the accelerated timeline set by Chairman Tim Scott, who has announced a markup hearing for January 15. A document from a recent meeting indicates that while some major disagreements remain, many Democratic suggestions have been included in the draft.

Key topics that have been under discussion since last spring—such as ethical standards, the handling of yield, regulations for money transmitters, the Treasury Department’s oversight role, and protections for developers—are still being negotiated.

“It’s crucial for us to have an official vote,” Scott stated in an interview published Tuesday. “Next Thursday, we’ll vote on the market structure bill. Over the past six months, we’ve worked hard to ensure every committee member had access to multiple drafts.”

Despite progress, several significant issues remain unresolved between the parties, as highlighted in the meeting document. These include Democratic concerns related to ethics, particularly those connected to former President Donald Trump’s involvement in crypto.

Nonetheless, the document also details numerous Democratic priorities that have been addressed, such as anti-money laundering measures influenced by the Treasury Department and several provisions adapted from the House’s Digital Asset Market Clarity Act.

“Both parties are motivated to see this through,” said Cody Carbone, CEO of the Digital Chamber, in a Tuesday interview. “Even if there isn’t unanimous agreement, there’s enough momentum to keep the process moving forward.”

Major Steps Remain

The upcoming markup represents a critical procedural milestone, moving the bill from proposal to the formal legislative process. Since the House passed its own version of the Clarity Act last year, a Senate-approved bill could complete the legislative package and potentially reach Trump’s desk for signature.

What Still Needs to Happen

Several hurdles remain before the bill can become law. First, the committee must complete the markup process. Afterward, the Senate Agriculture Committee—which oversees much of the crypto sector and the Commodity Futures Trading Commission—must conduct its own review and reconciliation process.

Carbone believes that this markup could clarify the final points of contention between Democrats and Republicans before a full vote. However, some industry lobbyists caution that Democrats may resist moving forward until their core concerns are addressed.

The industry is relying on a group of Democrats who have remained engaged in negotiations. Carbone remains hopeful that the process will continue, even though Senator Elizabeth Warren, the committee’s top Democrat, is expected to maintain her opposition.

The Agriculture Committee has moved more slowly than the Banking Committee, though it is known for bipartisan cooperation. Once the Banking Committee acts, supporters expect the Agriculture Committee to follow suit in the coming weeks.

• After both committees complete their markups—a process where amendments are proposed and debated—they will vote on whether to advance the bill.
• If both panels approve, their separate drafts will be merged into a single bill for a full Senate vote.
• If the Senate passes the bill, it returns to the House, where it is expected to receive broad bipartisan support, similar to the Clarity Act.
• The final step would be the President’s signature, making the bill law.

Industry Ramps Up Lobbying Efforts

The crypto sector has been actively involved throughout the legislative process, including a December meeting where industry leaders were invited to meet with senators before the holidays.

This week, the Digital Chamber is leading a final push, bringing executives and digital asset leaders to Capitol Hill on Thursday to emphasize the importance of the legislation. “We’re meeting with as many Senate offices as possible,” Carbone explained. “Our aim is to assemble a diverse group of industry representatives to address any questions about the market structure bill.” Executives from Binance.US, Unicoin, Anchorage Digital, Hedera, and others are expected to participate.

However, industry representatives have refrained from endorsing the current draft, as key issues—such as regulations for decentralized finance (DeFi) and the treatment of stablecoins offering yield—remain unresolved.

Many in the crypto community warn that failure to address DeFi oversight could jeopardize industry support. Carbone noted that there has been “meaningful, bipartisan progress on DeFi.”