US crypto regulation is finally starting to move. And this time, it feels different.
Lawmakers in Washington are quietly building momentum around a long awaited crypto market structure bill. This week, members of the Senate Banking Committee sat down for extended, closed door discussions with leaders from major crypto firms, industry groups, and Wall Street trade associations. The message was clear. The bill is not stalled. It is progressing.
While there will be no formal committee hearing before the holiday recess, Senate officials confirmed the next major step, a markup, is now expected once Congress returns. That pushes timelines into early 2026, but insiders say the groundwork is being laid right now.
At the center of the negotiations is a familiar debate. Who regulates what.
Lawmakers are working toward a framework that splits oversight between the SEC and the CFTC. The proposal would also introduce a new “ancillary asset” category to clearly define which digital assets fall outside traditional securities law. That clarity has been one of the crypto industry’s biggest asks for years.
DeFi is another hot topic. Senators are still debating how decentralized finance should be treated and, more importantly, how to define intermediaries without accidentally pulling open source developers into the regulatory net.
Stablecoins remain the most sensitive issue.
Banking groups continue to push back on the GENIUS Act, arguing that allowing stablecoin issuers to offer yield risks turning payment tools into quasi investment products. Crypto executives disagree, saying yield is a natural part of competition in modern financial markets. Even so, both sides admit compromise is unavoidable if the bill is going to move forward.
Senate Banking Chair Tim Scott has been actively engaging with both camps, signaling a rare moment of bipartisan cooperation. Democrats are still asking for more time to resolve outstanding issues, but participants in the latest talks say confidence is growing.
The takeaway is simple. This bill is not dead. It is being refined.
If negotiations stay on track, lawmakers expect a formal markup in January or early 2026. After years of regulatory uncertainty, crypto finally appears to be edging closer to a clear rulebook.
