- Senate Banking Chair Tim Scott says Republicans are warming up for a possible Market Structure bill markup before Thanksgiving 2025.
- Republicans agree to incorporate adequate Anti-Money Laundering and Bank Secrecy Act provisions into the bill.
- Discussions at the recent crypto roundtables on Capitol Hill suggest Democrats and Republicans are willing to work together on Market Structure.
At Wednesday’s “Crypto Blitz” roundtable discussions on Capitol Hill, Senate Banking Chair Tim Scott suggested Republicans are eyeing a markup for the Crypto Market Structure Legislation before Thanksgiving, Nov. 25. The meeting between lawmakers and industry leaders was to explore a path forward for the bill, which has been stalled by conflicting interests along party lines.
Republicans Okay AML/BSA Elements For Market Structure
The Crypto Roundtable was generally successful, despite the differences in policy considerations raised on the Republican and Democrat sides of the discourse. The Republican meeting with industry leaders was very relaxed, according to witnesses, with lawmakers being enthusiastic to collaborate with Sen. Kristine Gillibrand and other Democrats.
In addition, there was consensus among the Republicans to include strong AML (Anti-Money Laundering), BSA (Bank Secrecy Act), and other elements against illicit finance in the legislation.
Furthermore, heavy emphasis was laid on the definition and regulation of Defi, especially since Democrats earlier proposed the regulation of all parties involved in Defi, inciting a critical clash of interests.
The suggestions were to either target regulation at only intermediates, not protocols, or to unite Republicans, Democrats, and industry leaders in a 3-hour meeting where they can analyze the bill in detail and air their reservations.
Moonpay President, Keith Grossman, was among the industry leaders present. In support of the DeFi industry, he stressed that regulation “should focus on intermediaries like on-/off-ramps (us) – not protocols and developers.” According to him, “these individuals and companies should be able to innovate and thrive without this unnecessary burden.”
Senator John Kennedy from Louisiana raised concerns about the banking industry being “worked up”, adding that they should be taken seriously. Although he was not specific about the big banks’ grievances, it is possibly about their revolt against yield-bearing stablecoin provisions and their push to ban them in the Market Structure bill.
Democrats Not Intentionally Stalling Bill’s Progress
Meanwhile, the crypto industry is also on a campaign against the dissolution of stablecoin rewards codified in part of the GENIUS Act via the Market Structure bill. It is popular opinion that Democrats are lobbying for Wall Street, based on their position on stablecoin rewards, which is a key factor behind the bill’s current deadlock.
The Senate Democrat Roundtable, on the other hand, was also cordial, except for outbursts by Senator Ruben Gallego about midway into the meeting, blaming Republicans over the leaked Defi proposal for Market Structure. They stressed that they were not intentionally trying to slow down the advancement of the bill, as their counterparts alleged.
Democrats also gave industry representatives the chance to share vital areas of focus for the bill. The directions of the meetings suggest a consensus between the parties is imminent, and as Scott said, a mark-up is possible before the end of November.
