Negotiations in the U.S. Senate over a long-awaited crypto market structure bill are increasingly likely to extend into January as lawmakers head toward the holiday recess with key issues unresolved.
The legislation, viewed by the digital asset industry as its top policy priority, remains under active discussion but has not yet reached consensus among Democrats, Republicans, the White House and industry stakeholders.
Draft legislative language has been circulating privately among industry executives and policymakers, reflecting progress but also highlighting remaining divisions.
According to sources familiar with the talks, parts of the draft were briefly presented during a White House meeting led by President Donald Trump’s crypto adviser, Patrick Witt.
Industry representatives who reviewed the material have not formally endorsed the current approach, underscoring the preliminary nature of the text.
As many as four major policy disagreements continue to slow progress and complicate bipartisan support.
One unresolved issue centres on ethics rules governing government officials’ involvement with digital assets, including whether senior figures should be restricted from profiting from crypto-related interests.
Stablecoin design is another point of contention, particularly over whether stablecoins should be permitted to offer yield to holders.
Lawmakers are also divided on the scope of authority the U.S. Securities and Exchange Commission should have in determining which crypto tokens fall under its jurisdiction.
The regulatory treatment of decentralised finance remains a sensitive topic, with the industry drawing firm red lines around protections for open-source developers and decentralised protocols.
The White House has pushed back on Democratic proposals that would impose stricter ethics limitations on senior officials’ crypto activities.
Witt said the administration and Senate Republicans remain aligned on safeguarding innovation, stating that they “are in lockstep on the need to protect software developers and DeFi.”
Despite ongoing disagreements, lobbyists say the pace and intensity of negotiations remain unusually high compared with previous legislative efforts.
There is growing optimism that the bill could still advance to formal committee markups in the Senate Banking Committee and the Senate Agriculture Committee early in the new year.
“I've never been so optimistic, and I've never seen both parties so eager to sit at the negotiation table and move paper back and forth,” Cody Carbone said.
Carbone added that there is “a real desire and momentum from everyone involved to get this done,” pointing to sustained engagement across party lines.
If enacted, the bill would establish clear federal definitions for crypto tokens, set market conduct rules and clarify regulatory authority between agencies.
Regulators have continued to issue guidance and proposed rules in the absence of legislation, though many acknowledge that statutory clarity is needed for long-term stability.
With only a limited number of Senate workdays remaining this year, lawmakers involved in the talks have returned to their states, leaving staff to continue discussions.
Industry participants are increasingly preparing for negotiations and potential markups to resume in January, rather than expecting final text before year-end.
“Negotiations are still underway, but realistically looking at the calendar, there are only a few days left,” Carbone said, adding that momentum remains intact heading into the new year.