US Senate Republicans defend crypto market structure bill ahead of vote

US Senate Republicans said a proposed digital asset market structure bill does not serve industry interests as it heads for a Senate Banking Committee markup.

The legislation, known as the CLARITY Act, has been described by Republicans as a bipartisan effort focused on investor protection.

Republicans released a “myth vs. fact” briefing rejecting claims the bill was written by the crypto industry.

"The bill has been shaped by years of bipartisan work and focuses on public-interest outcomes,"

Senate Republicans said.

Lawmakers said the bill aims to strengthen national security, protect investors and provide clear regulatory rules.

Some crypto firms have raised concerns ahead of the markup, despite earlier expectations the bill would advance last year.

Galaxy Digital warned the bill could expand government surveillance and enforcement powers over crypto users.

Coinbase has signalled it may withdraw support unless issues around stablecoin rewards are addressed.

An amended draft would block passive returns on stablecoin balances but stop short of an outright ban.

Coinbase chief policy officer Faryar Shirzad said parts of the draft caused “enormous concern,” citing limits on tokenised equity markets.

Senate Democrats and Republicans are expected to debate further amendments during Thursday’s markup.

The Senate Agriculture Committee will release its own draft on 21 January with a markup scheduled for 27 January.

Both committees are reviewing how agencies such as the SEC and CFTC would oversee crypto regulation and enforcement.