Senator Tim Scott, as chair of the Senate Banking Committee, is racing to secure a bipartisan cryptocurrency market structure bill before the 2025 holiday break. His dual role leading the National Republican Senatorial Committee complicates negotiations with Democrats amid upcoming 2026 elections. The effort highlights tensions between policy goals and political fundraising in a sector poised to spend hundreds of millions.
Senator Tim Scott (R-S.C.), in his first year as chair of the Senate Banking Committee, is navigating complex negotiations to advance a landmark cryptocurrency market structure bill. The legislation aims to overhaul regulations for digital assets, spanning the jurisdictions of the Banking and Agriculture committees. Scott, who also chairs the Senate GOP's National Republican Senatorial Committee (NRSC)—a dual role not held by a Republican in nearly 25 years—must court Democratic cooperation for the bill while preparing to challenge them in the 2026 midterms.
Negotiations have been chaotic, with public disputes arising. Last month, Scott accused Democratic negotiators of stalling. Democrats recently presented a counteroffer, pressing for changes ahead of a planned committee markup next week, before senators depart for the holiday break at the end of December 2025. The crypto industry is expected to invest hundreds of millions in the elections, potentially influencing key races such as the reelections of Democratic Senators Jon Ossoff of Georgia and Mark Warner of Virginia, both past supporters of industry-friendly measures.
In an interview, Scott emphasized focusing on securing votes rather than politics or fundraising. "What I’m looking for are enough votes to get to ‘yes,’" he said. "The truth of the matter is, the less you think about the money, the better off we all are." He credited Republican majorities for enabling the crypto discussion and noted embedding elements of the House-passed CLARITY Act, which garnered support from 78 Democrats in July 2025.
House Republicans express frustration with Senate delays, with one anonymous member attributing speedbumps to Scott's dual roles: "I need to work with you, but I’m trying to beat the shit out of you—that just structurally creates problems." A separate stablecoin bill became law in July 2025 after President Donald Trump urged its passage.
Senator Kirsten Gillibrand (D-N.Y.), a lead negotiator and DSCC chair, faces a similar balancing act. Senator Cynthia Lummis (R-Wyo.) praised their efforts, saying, "Sen. Scott and Sen. Gillibrand are in counterbalancing positions... they’re doing a very good job." Former Representative Patrick McHenry, who led earlier crypto pushes, noted the challenges: "It’s tough to build policy in public, and that’s what they’re doing."
Scott's committee has seen successes, including a unanimous housing bill, but the crypto effort remains his most ambitious amid lobbying battles and staff turnover. If no agreement is reached, Republicans could force a vote to highlight Democratic opposition, potentially benefiting politically. Optimism persists for broader Senate support post-committee.
