Negotiations in the U.S. Senate concerning a crypto market structure bill—the primary objective of the industry’s policy lobbying—have yet to settle several disagreements as discussions approach the holiday break, indicating that substantial progress may not be realized until January.
Draft legislative text has been shared confidentially among industry stakeholders, with executives reviewing parts of the current draft during a White House meeting on Thursday, as reported by sources familiar with the events. These pages were briefly presented in a session led by President Donald Trump’s crypto advisor, Patrick Witt, although industry representatives have not yet endorsed the proposed approach.
Several critical issues remain to be resolved for Democrats to align with Republicans on the bill. This involves a complex negotiation that includes Senate Democrats, Republicans, the White House, and the crypto industry, which has yet to reach agreement on topics such as ethics rules regarding government officials’ engagement with digital assets (including President Donald Trump), whether stablecoins should be linked to yields, and the powers the U.S. Securities and Exchange Commission (SEC) may have to regulate certain tokens and the treatment of decentralized finance (DeFi).
The White House has already rejected the negotiators’ proposals pertaining to the Democrats’ ethics stance, which advocated for prohibiting high-ranking government officials from profiting from crypto interests, as demonstrated with Trump and his family’s businesses. Additionally, the crypto industry has established specific boundaries regarding the freedoms under which DeFi should function.
Witt mentioned in a social media post that the White House and Senate Republicans “are united on the necessity to safeguard software developers and DeFi.”
Despite some divergence in negotiation strategies, the pace and fervor of discussions remain unprecedented in the Senate, providing optimism for lobbyists that the legislation could progress toward formal committee markup in the upcoming weeks.
“I’ve never felt this optimistic, nor have I witnessed both parties so motivated to gather at the negotiating table and exchange proposals,” stated Cody Carbone, CEO of the Digital Chamber, a key Washington advocacy organization for crypto. “There’s genuine momentum and eagerness from everyone involved to finalize this.”
Finalizing such legislation would clearly define U.S. positions on classifying crypto tokens, establishing market operation rules, and determining which agencies hold authority over various activities. Meanwhile, regulators are advancing independently to address some of these issues via statements, guidance, and rule proposals, although they collectively agree that comprehensive crypto legislation is essential for a sustainable framework.
However, the Senate has limited availability and only a few working days remaining this year. Lawmakers who have spent time at the negotiation table are returning to their states for the weekend, though their staffs may continue discussions. While the public unveiling of incomplete legislative language could occur anytime, crypto insiders have already started to contemplate scenarios for January.
If potential markups in the Senate Banking Committee and Agriculture Committee occur in the early weeks of 2026, it could still precede another possible budget conflict at the end of January, similar to the recent situation that temporarily halted the federal government.
“Negotiations are still ongoing, but looking realistically at the timeline, there are only a few days remaining,” Carbone informed CoinDesk. “Thus, the conversations transitioning into January don’t signify a shift in momentum. Progress is ongoing, and I anticipate tangible developments early in the new year.”
