DeFi, ethics disputes remain in Senate crypto bill ahead of Jan. 15 vote

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email DeFi, ethics disputes remain in Senate crypto bill ahead of Jan. 15 vote The Senate is approaching a potential markup that may advance crypto legislation to a vote, and industry insiders are amassing for a lobbying push this week. By Jesse Hamilton | Edited by Nikhilesh De Jan 7, 2026, 12:57 a.m. Make us preferred on Google The U.S. Senate is potentially as close as it's ever been to a crypto market structure law. (Jesse Hamilton/CoinDesk) What to know : The U.S. Senate is potentially as close as it's ever been to a crypto market structure law, as the Senate Banking Committee's chairman said the panel will be ready to mark up the latest draft next week. It's still unclear how much Democrats might push back against this timeline, considering most of the big-ticket disputes remain to be resolved between the parties. A negotiation document that emerged after a meeting among senators on Tuesday demonstrates that many of the Democrats' requests have potentially been satisfied, but key concerns over the ethics of senior government officials, the treatment of DeFi and the question of stablecoins offering yield still await answers. Crypto insiders will visit Senate offices this week to cheer on the negotiations. The U.S. Senate Banking Committee is inching closer to agreement on a bipartisan crypto market structure bill, with a vote next week, its chairman said, as industry insiders prepare for a blitz of the Senate offices on Thursday. 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 . Republicans on the committee are exhibiting wide confidence that their finish line is near on the lengthy negotiations over a bill to set up regulated crypto markets in the U.S. However, Democratic negotiators haven't broadly weighed in on the rapid timeline that committee Chairman Tim Scott said will conclude with a January 15 markup hearing. A document that emerged from the Tuesday meeting, first reported by Politico , shows that while the main sticking points are still in place between the parties, numerous Democratic requests have been incorporated. Many of the key issues Democrats had with the market structure bill as far back as last spring, when lawmakers were negotiating stablecoin legislation, still seem to be under discussion, including ethics, how yield is treated, how money transmitters are addressed, the role of the U.S. Treasury Department in policing crypto and developer protections. "I think it’s important for us to get on the record and vote," Scott said in an interview with Brietbart published on Tuesday. "So, next Thursday, we’ll have a vote on market structure. We have worked tirelessly for the last six-plus months making sure that we had multiple drafts available to every member of the committee.” Everybody agrees there are a number of major provisions that haven't been worked out between the parties, as explicitly illustrated in the document that emerged from the meeting, including the ethics demands made by Democrats based on President Donald Trump's personal crypto ties. However, what it also shows is item after item of Democratic requests that were satisfied during the talks. They include illicit-finance points that reflect input from the Treasury Department, and a number of provisions were copied over from the House of Representatives' Digital Asset Market Clarity Act. "There is motivation from both Republicans and Democrats to get this done," said Cody Carbone, CEO of the Digital Chamber, in an interview with CoinDesk on Tuesday. "So I think there is a hope that even if there is not 100% agreement on a bill, that there is enough support to continue to move this forward." Still ways to go Scott's long-awaited markup is a massive procedural step that would turn the corner from proposed legislation to a bill moving through the actual approval process. Since the House already passed its similar Clarity Act last year, a Senate version would complete the package that could — if approved — end up on Trump's desk. However, a lot has to happen before then. First, the committee has to go through this markup. Then, a matching process has to happen in the Senate Agriculture Committee , which has its own significant jurisdiction over the crypto arena and a leading regulator of the sector, the Commodity Futures Trading Commission. Carbone argued that a markup at this stage could better define the final points the Democrats and Republicans need to work out before the final vote. Other industry lobbyists are more reserved about counting on a successful markup, suggesting that Democrats may strenuously resist moving forward before some of their central demands have been addressed. He said the industry is counting on the group of Democrats that's stayed at the negotiating table. Carbone says he's optimistic they'll keep the process moving, even though the committee's ranking Democrat, Senator Elizabeth Warren, would be expected to remain in the vocal opposition. The Agriculture Committee has trailed its banking colleagues markedly during this process, though its members tend to move better in bipartisan action than Scott's committee. Once the banking panel acts, those working on the bill think the other committee will follow in the coming weeks. Here's what would still have to happen: Once both committees do the markup — a process in which amendments are introduced and debated — the panels vote on whether to advance the legislation. If committees pass that step, their two distinct legislative drafts are mashed into one bill for a vote of the overall Senate. If the bill clears that major hurdle, it goes back to the House, where it's expected to be approved by a wide, bipartisan margin like the similar Clarity Act before it. Then, a Trump signature would make it law. Lobbying pressure The crypto industry has had its say at several points along the way in the lengthy negotiation, including last month when industry leaders were invited to meet with senators before the holiday break in December. But the Digital Chamber is organizing a final push this week, flying in executives and other digital assets leaders to flood the Senate offices on Thursday, explaining how important they think this process is. "We are blanketing the Senate, meeting with as many Senate offices as possible," Carbone said. "And the goal is to bring a very diverse group of industry participants to answer any possible questions they have on the market structure bill."Executives from Binance.US, Unicoin, Anchorage Digital, Crypto.com and Hedera are expected to participate, among many others. The industry representatives have been careful, though, not to say whether they support the current legislative draft, because it includes vital provisions that haven't been worked out completely — including the treatment of decentralized finance (DeFi) and the question of stablecoins offering yield or rewards. Many crypto insiders have suggested that a failure to satisfy worries about DeFi oversight could still tank the industry's support. Carbone said there have been "real, substantive, bipartisan progress on DeFi." Read More: Crypto bill markup expected next week as pressure mounts before shutdown deadline U.S. Senate Tim scott crypto legislation DeFi Donald Trump 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 Crypto bill markup expected next week as pressure mounts before shutdown deadline By Jesse Hamilton | Edited by Nikhilesh De 5 hours ago 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. 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 the parties can hash out a compromise measure to meet that timeline, considering the several major sticking points for Democratic negotiators. Read full story Latest Crypto News Michael Saylor's Strategy catches a break from MSCI, but analysts caution fight isn’t over yet 1 hour ago Strategy surges 6% on MSCI decision not to exclude DATs from indexes 3 hours ago Asset manager Bitwise sees 3 tests for crypto’s 2026 rally 4 hours ago How to stay safe after the Ledger customer data leak: experts urge privacy first 5 hours ago Crypto bill markup expected next week as pressure mounts before shutdown deadline 5 hours ago Polkadot's DOT declines in U.S. afternoon selloff 6 hours ago Top Stories Strategy surges 6% on MSCI decision not to exclude DATs from indexes 3 hours ago Crypto bill markup expected next week as pressure mounts before shutdown deadline 5 hours ago How to stay safe after the Ledger customer data leak: experts urge privacy first 5 hours ago Don’t hold your breath for Venezuela’s bitcoin 7 hours ago Crypto prices retreat in return to downward U.S. trading day action 7 hours ago Michael Saylor's Strategy catches a break from MSCI, but analysts caution fight isn’t over yet 1 hour ago