U.S. senators from both parties met on January 6, 2026, to restart negotiations on a bill establishing a regulatory framework for cryptocurrencies, amid mounting pressures from a looming government shutdown deadline. Republicans presented a 'closing offer' to Democrats, proposing over 30 revisions, as Senate Banking Committee Chairman Tim Scott plans a markup on January 15. Key sticking points include ethics standards and limits on crypto yields competing with traditional banks.
On January 6, 2026, senators convened in Washington for the first time this year to revive talks on the crypto market structure bill, which aims to provide regulatory clarity for digital assets following last summer's stablecoin legislation (Public Law 119-27). The meeting, held in Chairman Tim Scott's (R-S.C.) office, followed a 'closing offer' document sent by Republicans on January 5. The proposal, from Scott along with Senators Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio), includes more than 30 changes to Title I on digital asset classification, plus new sections on investor protections and combating illicit finance.
Senator John Kennedy (R-La.) informed Punchbowl News that Scott is targeting a markup no later than January 15, a timeline echoed by Scott's spokesman and Trump's crypto czar David Sacks in a prior social media post. However, Democratic negotiators, including Senator Catherine Cortez Masto (D-Nev.), highlighted unresolved issues. Cortez Masto described the talks as 'very productive' and said she 'definitely' expects a markup next week, per POLITICO.
Democrats are pressing for ethics provisions to prevent officials, including Trump family members, from profiting off crypto, as well as guarantees for Democratic appointments at the SEC and CFTC. Another flashpoint is restricting yield-bearing crypto products, like stablecoin rewards, which banks argue exploit loopholes in the GENIUS Act and could divert billions from community lending. The American Bankers Association warned in a letter that such activity threatens small businesses, farmers, students, and homebuyers.
The urgency stems from the House's prior approval of its Digital Asset Market Clarity Act, a January 30 federal spending deadline to avert a shutdown, and upcoming midterm elections compressing the calendar. While bipartisan momentum builds, a markup without Democratic consensus could deepen divides over regulation and DeFi constraints.
