- Senate Republicans, led by Banking Committee Chairman Tim Scott, have escalated efforts to advance crypto market structure legislation by delivering a 'closing offer' to Democratic negotiators.
- The proposal, sent Monday night, includes over 30 revisions to Title I and two new titles focused on investor protections and illicit finance.
- Key GOP figures involved include Cynthia Lummis, Bill Hagerty, and Bernie Moreno.
- While a bipartisan meeting occurred Tuesday to discuss the offer, significant sticking points remain, including ethics provisions regarding elected officials and leadership appointments at regulatory agencies.
Quick Summary
Senate Republicans have escalated efforts to advance long-stalled crypto market structure legislation by delivering what they describe as a "closing offer" to Democratic negotiators. Banking Committee Chairman Tim Scott (R-S.C.) is moving toward a committee markup as soon as next week.
The proposal was sent Monday night by Scott and fellow GOP senators Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio). It outlines a series of proposed changes ahead of a bipartisan member meeting on Tuesday. The document includes more than 30 revisions to Title I, which governs the legal classification of digital assets, as well as two new titles focused on investor protections and combating illicit finance.
Despite the renewed push, major sticking points remain unresolved. Democrats are pressing for ethics provisions to prevent elected officials from profiting from crypto businesses and are debating whether crypto firms should be allowed to offer yield-bearing products. Senator Catherine Cortez Masto (D-Nev.) stated she "definitely" expects a markup next week, describing talks as "very productive." However, lawmakers face a compressed legislative calendar with a January 30 federal spending deadline looming.
GOP Submits 'Closing Offer' 📝
Senate Banking Committee Republicans are actively working to advance crypto legislation following a period of stagnation. On Monday night, Chairman Tim Scott and his colleagues sent a document to Democratic negotiators characterized as a "closing offer and state of play."
The proposal aims to bridge gaps in the legislation, specifically targeting Title I, which dictates the legal classification of digital assets. The Republicans proposed more than 30 revisions to this section. Additionally, the offer introduces two entirely new titles to the bill:
- Investor Protections: New measures designed to safeguard participants in the crypto market.
- Combating Illicit Finance: Provisions aimed at preventing the use of digital assets for illegal activities.
The offer was signed by Senators Cynthia Lummis, Bill Hagerty, and Bernie Moreno. Following the submission, lawmakers met in Chairman Scott's office on Tuesday morning to review the document and discuss unresolved issues not explicitly covered in the text.
I "definitely" expect a markup next week.— Senator Catherine Cortez Masto (D-Nev.)
Markup Timeline and Political Pressure ⏳
Chairman Tim Scott is pushing for a committee markup of the legislation next week. According to reports, the Senate Banking Committee is targeting January 15 for this procedural step. However, the committee will likely need to release an updated bill draft before the markup can proceed.
The timeline faces significant external pressures. Lawmakers are operating on a compressed legislative calendar. A January 30 federal spending deadline looms, creating the risk of a government shutdown. Furthermore, political pressure is mounting ahead of upcoming midterm elections.
If Chairman Scott proceeds with a markup without full Democratic buy-in, it could force negotiators to take public positions on a bill that has yet to bridge deep philosophical divides. These divides center on regulation, enforcement authority, and the treatment of decentralized finance (DeFi).
Unresolved Democratic Demands 🛑
Despite the momentum generated by the Republican "closing offer," Democrats continue to press for specific concessions that remain major sticking points. The negotiations involve complex issues regarding regulatory oversight and market structure.
Key demands from Democratic negotiators include:
- Ethics Provisions: Measures aimed at preventing elected officials, including members of the Trump family, from profiting directly from crypto businesses.
- Regulatory Leadership: Guarantees that Democrats will be appointed to leadership roles at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).
- Yield-Bearing Products: A debate over whether crypto firms should be permitted to offer products that yield returns, which could compete directly with traditional banking institutions.
Despite these unresolved issues, there is a sense of optimism. Senator Catherine Cortez Masto, a moderate Democrat involved in the talks, noted that negotiations have been "very productive" and open on both sides. She confirmed that she "definitely" expects the markup to move forward next week.
Conclusion
The Senate Republicans, led by Chairman Tim Scott, have made a decisive move to break the legislative deadlock on crypto market structure. By submitting a comprehensive "closing offer" with over 30 revisions and new titles, the GOP has laid down a marker for bipartisan negotiations.
While the path forward includes navigating demands for ethics provisions and regulatory leadership appointments, the commitment from both sides to continue discussions suggests progress is being made. With a target date of January 15 for a committee markup, the coming week will be critical in determining whether this long-awaited legislation can advance through the Senate Banking Committee.
"Talks are "very productive" and open on both sides."
— Senator Catherine Cortez Masto (D-Nev.)
Frequently Asked Questions
What is the status of the crypto market structure bill?
Senate Republicans have submitted a 'closing offer' with proposed revisions to Democratic negotiators. Chairman Tim Scott is pushing for a committee markup as early as next week, targeting January 15.
What are the main sticking points in the negotiations?
Democrats are demanding ethics provisions to prevent officials from profiting from crypto, guarantees on leadership appointments at the SEC and CFTC, and regulations regarding yield-bearing crypto products.
Who is leading the Republican effort?
Senate Banking Committee Chairman Tim Scott (R-S.C.) is leading the effort, alongside Senators Cynthia Lummis (R-Wyo.), Bill Hagerty (R-Tenn.), and Bernie Moreno (R-Ohio).
