The U.S. Senate's Cryptocurrency Market Structure Act stalls due to tight schedule

After weeks of bipartisan negotiations, the US Senate’s legislation on the cryptocurrency market structure has yet to make substantive progress. Democrats have submitted the latest counterproposal, accepting some aspects of the Republican framework but insisting on major reforms related to financial stability, market integrity, national security enforcement, and the behavior of public officials regarding digital assets. These disagreements highlight the lack of consensus within the Senate on the core regulatory framework of the bill.

Key points of dispute include digital asset information disclosure, secondary market protections, tools for identifying and curbing illegal finance, compliance obligations for decentralized platforms, and restrictions on stablecoin yields. Democrats also push for strict ethical standards to prevent elected officials from profiting through cryptocurrency projects, closely tied to controversies surrounding investments related to the Trump family. However, the White House has rejected some of the ethical provisions and Democratic nomination requirements, further complicating negotiations.

With just days remaining in the 2025 Senate agenda, delaying negotiations until January 2026 would face dual pressures from midterm elections and the expiration of government funding, potentially leading to further legislative delays. The House previously passed the Digital Asset Market Transparency Act and called for the Senate to directly adopt or amend it, but the Senate is still working on a tailored version.

Meanwhile, progressive groups and labor unions have expressed concerns that inadequate regulation could threaten US financial stability and pose risks to retirees relying on pensions. Senior Democratic senators like Elizabeth Warren continue to pressure, emphasizing potential risks associated with the rise of the cryptocurrency industry.

Overall, the cryptocurrency market structure bill still faces significant resistance in the Senate. Core regulatory disagreements and the tight legislative schedule make it difficult to advance the bill in the short term. Market observers are closely watching the legislative developments in the coming weeks and their potential impact on the US crypto market. (CoinDesk)