Senate Plans Crypto Market Structure Push as SEC Takes Center Stage

U.S. Senate Banking Chair Tim Scott signaled Tuesday that Washington’s long-anticipated crypto market structure overhaul is finally nearing a decisive moment, with a committee vote planned for next month.

Speaking on Fox Business, Scott said he intends to have both the Senate Banking Committee and the Agriculture Committee mark up the legislation before the end of 2025, positioning it for a full Senate vote early next year. He emphasized that the goal is to deliver a regulatory framework that protects consumers while reinforcing America’s position as the world’s leading economic powerhouse.

The bipartisan legislation is designed to clearly define regulatory turf between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), a central point of tension as crypto assets straddle both securities and commodities laws. A key feature of the Republican-led draft is the creation of “ancillary assets,” a new classification intended to distinguish certain cryptocurrencies from traditional securities — a step lawmakers say will foster industry clarity.

Scott criticized Democrats for slow-walking negotiations earlier in the year, arguing that the delays have held back U.S. innovation and global competitiveness. But momentum began shifting after a leaked Democratic proposal — a six-page outline focused heavily on decentralized finance — drew backlash from crypto companies. Critics argued the draft’s emphasis on determining who “exerts control or influence” over protocols could functionally prohibit core elements of DeFi.

Following that controversy, lawmakers from both parties held separate meetings with major industry stakeholders. Participants said several Democratic senators are now engaged and motivated to reach a workable compromise.

The Senate’s work follows the House’s passage of its own market structure blueprint, the CLARITY Act, earlier this summer. Any final bill will require bipartisan alignment before it can move to President Trump’s desk for signature.

With both parties now actively negotiating, the closing weeks of the year may determine how — and how quickly — the U.S. sets the rules for the next era of digital assets.