- Senator Scott, through a spokesperson, announced the postponement of the markup and committee vote for the crypto market structure legislation to early next year.
The crypto market structure legislation in the US hits another bump on the road. Reports say that the Senate Banking Committee has decided to postpone its markup hearings on the bill to next year.
Crypto Market Structure Markup Postponement
Senator Tim Scott, the South Carolina Republican who chairs the Senate Banking Committee, announced the group’s decision via a spokesperson on Monday. Jeff Naft, Scott’s spokesperson, stated that negotiations are ongoing and that the markup is expected to be conducted by early 2026.
For context, a markup hearing refers to a committee meeting in the US Congress where lawmakers debate, revise, and amend a proposed bill. It includes fine-tuning the terminologies and technicalities for clarity before voting to elevate it into the full chamber for consideration.
Naft ensured that the bill gained significant support from the Democratic Party. He added that it underscores Scott’s goal of making the proposed law a bipartisan effort.
“[Chairman Scott] has consistently and patiently engaged in good-faith discussions to produce a strong bipartisan product that provides clarity for the digital asset industry and also makes America the crypto capital of the world,” said Naft.
The move reportedly accommodates the Democratic Party’s request to extend the time for deliberations on the bill before bringing it to the full chamber.
Reasons for the Delay
Naft didn’t elaborate on the reasons for the delay. However, as Blockzeit has reported previously, a major bottleneck emerged from the bill’s illicit finance loopholes.
The Democratic Party sought a blanket ban on digital asset services utilized by malicious actors, such as terrorists and hostile nations to the US, like North Korea. Additionally, the negotiators demanded “risk-based tools” for regulators to immediately pinpoint platforms that tolerate money laundering, terrorist financing, and sanctions evasion. Moreover, they wanted to expand current anti-money laundering regulations to address “emerging digital asset transfer risks” without compromising privacy standards or due process.
Another point of contention was the debate over elected officials and their immediate families benefiting from digital asset projects. In addition to potential conflicts of interest, the legislators argued that such activities “erode public trust” and “undermine confidence in the digital asset industry.”
Scott’s punt notably pushed Senator Cynthia Lummis’ and Senator Kirsten Gillibrand’s assurances that the Senate Banking group is already in its final touches for the pending crypto market structure bill and that they were looking to finish its committee vote before year-end.
