U.S. Senate Banking Committee advances crypto market structure bill ahead of key hearing

Traders Union
All News
Crypto News
Senate advances crypto bill

Highlights

Senate Banking Committee released the latest crypto market structure bill text ahead of Thursday's vote, but key ethics language remains unresolved and a final path is uncertain.
The draft bill preserves controversial stablecoin and DeFi provisions, with banking groups pressing for tighter stablecoin rules while industry research projects trillions in potential foreign capital inflows.
The bill must still be merged with Senate Agriculture Committee legislation and clear a 60-vote Senate threshold, with Democratic support and White House aiming for passage by July 4 or early August.

Bill text sets up Thursday committee vote

As reported by CoinDesk, the Senate Banking Committee released the latest text of the crypto market structure legislation shortly after midnight on Tuesday, ahead of a hearing on Thursday that is set to test whether the measure can move forward. Committee approval would mark a significant step for a bill that has faced a long path in Congress, though its route to President Donald Trump's desk remains uncertain.

The current draft does not yet include a conflict-of-interest section aimed at limiting government officials from profiting from the crypto industry. That issue falls outside the banking panel's jurisdiction and is expected to be addressed later, but it remains politically sensitive because Democrats have signaled they will not support the legislation without such language.

White House crypto adviser Patrick Witt says the administration wants rules that apply broadly across government rather than targeting any single officeholder. Senator Kirsten Gillibrand says the ethics provision still needs to be resolved before the bill can secure broader Senate backing.

Stablecoin and DeFi provisions remain central

The newly published text retains one of the most contested areas of the negotiations, the question of what forms of yield or rewards should be permitted for stablecoins. Banking groups that view stablecoins as a competitive threat are still pressing lawmakers to tighten those rules, while crypto lobbying organizations have urged members to make a final push on Capitol Hill.

Research released last week from Galaxy argues that growth in stablecoins could draw trillions of dollars of foreign capital into the U.S. financial system, offsetting potential domestic deposit disruption. That view supports the industry's case that stablecoin expansion may strengthen, rather than weaken, U.S. banking infrastructure.

The bill also keeps language aligned with the Blockchain Regulatory Certainty Act, preserving protections for DeFi software developers who do not control customer funds from being treated as money transmitters. The DeFi Education Fund says the most important protections for developers and infrastructure providers remain in the measure, though it is still monitoring possible amendments.

Senate negotiators still need to merge this version with a separate bill approved by the Senate Agriculture Committee if the banking panel signs off. Lawmakers must also secure 60 votes in the full Senate, meaning substantial Democratic support will be needed even as the White House targets a July 4 finish and some senators point to early August as a more likely timeline.

Our earlier update on Coinbase (COIN) focused on the company’s restructuring moves, including a 14% workforce reduction, alongside weaker Q1 results and softer trading volumes. It also noted Coinbase’s conditional OCC approval for a National Trust Company Charter and assessed COIN’s near-term technical setup as range-bound, with bullish momentum tempered by overbought signals and key levels around $200–$228.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.