U.S. senators met Tuesday to resume negotiations on the crypto bill that will set the structure of the digital asset market, according to people familiar with the matter, although no further agreement was announced on several points of debate between Democratic and Republican negotiators.
At one such meeting today, Senator John Kennedy told Punchbowl News that Senate Banking Committee Chairman Tim Scott anticipates a markup of the bill next week, on January 15th. The committee would likely release an updated bill before the markup, but the last draft was shared months ago.
After months of back-and-forth that failed to produce a finished product during last year’s congressional session, the process is starting again for 2026, even though lawmakers face a constrained and politically perilous timetable. Senate members are feuding over President Donald Trump’s actions in Venezuela, and they have weeks to meet a Jan. 30 deadline for a federal spending plan that can avoid another government shutdown, but crypto remains in the mix as another congressional priority.
If Scott pushes for a markup next week, it could avoid some of the budget stress, but it likely won’t be a bipartisan effort unless senators can very quickly resolve several outstanding items that Democrats have insisted on. Democrats — some of whom attended Tuesday’s meeting, according to people close to them — have pushed for ethics standards in the crypto bill to prohibit top government officials from profiting from digital asset activity, as President Donald Trump has done. They are also seeking constraints on decentralized finance (DeFi) platforms and limits on cryptocurrency yields that could allow the sector to compete with banks.
These are all tricky issues and potential obstacles to industry support for the legislation, although members of both parties have said they are motivated to reach a deal and pass legislation. If Kennedy’s suggested timetable for next week comes to fruition, it could force Democratic negotiators to oppose whatever is voted on unless common ground is found.
Trump’s crypto czar, David Sacks, had also suggested last month in a post on the social media site
Multiple sources of pressure are combining to increase the urgency for crypto action in the Senate. The House of Representatives has long approved its own Digital Asset Market Clarity Act to implement U.S. crypto regulation, so that chamber is awaiting the Senate. And the Jan. 30 deadline looms closer to establish a federal spending plan or risk a shutdown like the record 43 days of a few months ago. Additionally, this year there will be midterm congressional elections, which will add even more political pressure and scheduling constraints.
On Tuesday, the banking industry once again reiterated its strong interest in using this bill to resurrect last year’s Guiding and Establishing National Innovation for American Stablecoins (GENIUS) Act to prevent crypto affiliates from paying a yield on stablecoins. It has been a months-long lobbying battle between the two industries, and the legislation produced by the Senate negotiations could determine which sector emerges victorious.
Read more: What if efforts to structure the US cryptocurrency market just aren’t succeeding?
