U.S. Senate back to crypto talks as industry's make-or-break bill faces time crunch

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email U.S. Senate back to crypto talks as industry's make-or-break bill faces time crunch Senators met to restart the high-stakes negotiation over the crypto market structure bill, and one of them reportedly said a markup is planned next week. By Jesse Hamilton | Edited by Nikhilesh De Jan 6, 2026, 7:05 p.m. Make us preferred on Google U.S. Senator Tim Scott, chairman of the Senate Banking Committee, is said to be driving toward a crypto market structure bill markup this month. (Jesse Hamilton/CoinDesk)) What to know : Senators from both parties met for the first time in 2026 to restart talks over the crypto market structure bill. Senator Tim Scott, the chairman of the Senate Banking Committee, is reportedly pressing for a markup on the bill next week. It's unclear whether it's possible for the parties to hash out a compromise measure to meet that timeline, considering the several major stickying points for Democratic negotiators. U.S. senators met Tuesday to begin talks again on the crypto bill that will set the market structure for digital assets, according to people familiar with the situation, though no further accords have been announced on the several points of debate between Democratic and Republican negotiators. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . One of those meeting today, Senator John Kennedy, told Punchbowl News that the chairman of the Senate Banking Committee, Tim Scott, was planning for a bill markup next week on January 15. The committee would likely have to release an updated draft bill before the markup, but the latest draft was shared months ago. After months of back-and-forth that failed to reach a finished product in last year's congressional session, the process begins anew for 2026, though lawmakers face a constrained and politically perilous calendar. Members of the Senate have been tussling over President Donald Trump's Venezuela actions , and they have a few weeks to meet a January 30 deadline for a federal spending plan that can head off another government shutdown, but crypto remains in the mix as another congressional priority. If Scott presses for a markup next week, it could avoid some of the budget stress, but it's not likely to be a bipartisan effort unless the senators can very quickly resolve several outstanding points that Democrats have been pressing. The Democrats — some of whom were involved in the Tuesday meeting, according to the people familiar — have pressed for ethics standards in the crypto bill to ban senior government officials from profiting from digital assets activity, as President Donald Trump has. They're also seeking constraints on decentralized finance (DeFi) platforms and limits on crypto yield that could allow the industry to compete head-to-head with banks. These are all sticky issues and potential deal-breakers for industry support of the legislation, though members of both parties have said they're motivated to make an agreement and pass legislation. If the timing suggested by Kennedy for next week comes to pass, it may force Democratic negotiators to oppose whatever is voted on, unless common ground has been reached. Trump's crypto czar, David Sacks, had similarly suggested last month in a posting on social media site X that Scott committed to a January markup, though Scott hasn't yet made that commitment publicly. Several sources of pressure are all combining to increase the urgency of crypto action in the Senate. The House of Representatives have long since approved its own Digital Asset Market Clarity Act to set up U.S. crypto regulation, so that chamber is waiting on the Senate. And the January 30 deadline looms to set a federal spending plan or risk a shutdown like the 43-day record-breaker from a few months ago. Also, this year will bring the midterm congressional elections that adds further political pressure and calendar constraints. On Tuesday, the banking industry again reiterated its strong interest in using this bill to rehash last year's Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act to stop crypto affiliates from paying yield on stablecoins . That's been a months-long lobbying battle between the two industries, and the legislation produced by the Senate negotiations may determine which sector comes out on top. Read More: What if crypto's U.S. market structure effort just never gets there? U.S. Senate crypto legislation Tim scott U.S. Senate Banking Committee More For You KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market By CoinDesk Research Dec 22, 2025 Commissioned by KuCoin KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market. What to know : KuCoin recorded over $1.25 trillion in total trading volume in 2025 , equivalent to an average of roughly $114 billion per month , marking its strongest year on record. This performance translated into an all-time high share of centralised exchange volume , as KuCoin’s activity expanded faster than aggregate CEX volumes , which slowed during periods of lower market volatility. Spot and derivatives volumes were evenly split , each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line. Altcoins accounted for the majority of trading activity , reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover. Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity , indicating structurally higher user engagement rather than short-lived volume spikes. View Full Report More For You A few Republicans have crypto's destiny in their hands at the SEC, CFTC By Jesse Hamilton | Edited by Nikhilesh De 23 hours ago After holiday leadership shifts, the two U.S. markets regulators — the SEC and CFTC — are now run only by pro-crypto Republicans, with Congress still debating. What to know : The crypto industry finally has two permanent, crypto-friendly chairmen at the Securities and Exchange Commission and the Commodity Futures Trading Commission, and they have no Democratic pushback. The lack of fully stocked commissions at the market regulators is a big problem in the eyes of Senate Democrats negotiating the crypto market structure bill. The lone remaining Democrat, Caroline Crenshaw, left the SEC last week. 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