Emre Yumlu 
The long-anticipated legislation aimed at defining the regulatory framework for the US crypto market has been postponed by the Senate Agriculture Committee. The delay reflects lawmakers’ efforts to secure broader bipartisan backing before moving forward with a formal markup of the bill later this month.
Bipartisan Consensus Remains the Priority
Senate Agriculture Committee Chair John Boozman confirmed that the committee has intentionally slowed the legislative process to allow more time for cross-party negotiations. According to Boozman, while meaningful progress has already been made and discussions have been constructive, additional work is needed to finalize unresolved provisions and ensure the bill has sufficient political support.
As a result, the committee now plans to mark up the legislation during the final week of January. The bill had initially been scheduled for markup this week, aligning with a parallel review by the Senate Banking Committee.
Defining Regulatory Authority Over Crypto Markets
The delayed legislation is considered a cornerstone for US crypto regulation, as it seeks to clarify how oversight responsibilities will be divided between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). While the Senate Banking Committee oversees the SEC, the Agriculture Committee is responsible for the CFTC, making coordination between the two essential.
Unlike the House-passed CLARITY Act, which cleared the House of Representatives in July, the Senate version of the market structure bill is being advanced separately due to procedural requirements. Despite these differences, both efforts aim to bring regulatory clarity to an industry that has long operated under overlapping and often ambiguous rules.
Ethics Provisions and Stablecoin Yield Restrictions
Several contentious issues remain under negotiation. One major area of debate involves stablecoin yields. Bank lobbyists and some lawmakers are advocating for a complete ban on yield offerings, not only by stablecoin issuers but also by third-party platforms such as crypto exchanges. This push follows the GENIUS Act, which already restricted issuers from offering yield-bearing stablecoins.
Ethics provisions are another focal point. A group of Democratic senators is pressing for strict conflict-of-interest safeguards, including measures that would prevent public officials—President Donald Trump included—from financially benefiting from ties to crypto-related businesses.
Meanwhile, crypto advocacy groups are urging lawmakers to exclude software developers and non-custodial platforms from being classified as financial intermediaries, arguing that such entities should not be subject to traditional financial compliance rules.
Legislative Timeline Remains Uncertain on Crypto
According to investment bank TD Cowen, the approaching midterm elections could further complicate the bill’s passage by weakening political momentum. The firm suggests that approval may not occur before 2027, with full implementation potentially extending into 2029.
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