Title: Critical Crypto Market Structure Bill Nears December Review as Lawmakers Race Against Time
The long-awaited U.S. crypto Market Structure Bill, aimed at bringing greater regulatory clarity to the digital asset space, is expected to undergo formal markups in early December. This legislative push is seen as a vital step toward establishing a comprehensive framework for cryptocurrency oversight, though significant legislative and procedural hurdles remain.
According to recent commentary from Senator John Boozman, Chair of the Senate Agriculture Committee, the bill’s markup process had been delayed due to government shutdown-related disruptions. Boozman now confirms that efforts are underway to finalize draft language for review before the end of the year. Both the Senate Agriculture Committee and the Senate Banking Committee are actively working on parallel drafts, with the goal of aligning them into a unified proposal.
Senator Tim Scott, who chairs the Senate Banking Committee, previously aimed to initiate markups by late September. However, no official date for the committee’s markup session has been announced, and important sections of the proposed legislation remain incomplete. Notably, regulatory provisions concerning decentralized finance (DeFi) have yet to be fully developed or disclosed.
The ongoing bipartisan negotiations have reportedly led to a shift in how the bill is being constructed. The updated draft is still not publicly available, raising questions about whether it will be released before Thanksgiving. If not, industry analysts expect the crypto community to spend the holiday period examining the Agriculture Committee’s draft in detail.
Crucial aspects of the bill, particularly those related to DeFi and other emerging technologies, are still under debate. Some parts of the text remain bracketed—an indication that lawmakers have not yet reached consensus on specific language or provisions. This legislative ambiguity has sparked concern regarding the bill’s ability to comprehensively address all areas of the crypto economy.
Cody Carbone, CEO of the Digital Chamber, emphasized the need for better coordination between the two Senate committees. “At the moment, the process is too fragmented,” he noted. Carbone believes that while the Agriculture Committee is more advanced in its drafting process, the Banking Committee is expected to take the lead on DeFi-related sections, which fall more squarely under its jurisdiction.
He also projected that the Agriculture Committee will likely continue to solicit input from industry stakeholders and refine the unfinished sections in the coming weeks. However, with the end of the congressional session approaching, time is becoming a critical factor.
If both committees succeed in finalizing their drafts by December, the next step will be to consolidate the proposals into a single legislative package for consideration by the full Senate. Yet, lawmakers face mounting pressure due to the holiday season and the looming end-of-year deadlines, which could extend the bill’s path into the next congressional session.
Paul Grewal, Chief Legal Officer at Coinbase, acknowledged the remaining challenges but maintained a hopeful outlook. “Yes, there are still details to work out,” he remarked, “but I’m confident we’ll see this bill move forward. The stakes are too high to let it stall.”
The urgency surrounding the bill reflects broader concerns within the crypto industry about regulatory uncertainty and fragmented oversight. A unified market structure bill could provide a much-needed legal foundation, reducing compliance ambiguity and fostering innovation while protecting consumers.
As the crypto landscape continues to evolve rapidly, legislators are under increasing pressure to keep pace. The lack of clear rules has not only slowed institutional adoption but has also opened the door to illicit activity, as evidenced by recent investigations linking major exchanges to money laundering operations. A robust and well-defined regulatory framework is seen as essential for legitimizing the industry and attracting responsible investment.
Moreover, the fragmented approach to crypto regulation across various federal agencies has led to jurisdictional overlap and confusion. By delineating roles more clearly between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), the Market Structure Bill could help streamline enforcement and reduce bureaucratic gridlock.
The bill also holds the potential to redefine how decentralized protocols are treated under the law. Currently, many DeFi platforms operate in a legal gray area, with developers and users alike unsure of their obligations. By clarifying whether such platforms are subject to securities laws or derivatives regulations, the legislation could provide much-needed certainty and open the door to more compliant innovation.
Another critical component of the bill could involve stablecoin regulation. As stablecoins become increasingly integrated into both traditional and decentralized finance systems, the need for consistent oversight grows. Lawmakers are likely to address issues such as reserve backing, redemption rights, and issuer transparency—topics that are central to maintaining financial stability in a digital asset economy.
The crypto industry is also watching closely for how the bill treats custody solutions and consumer protection measures. As more retail investors enter the space, ensuring secure storage and clear recourse mechanisms in case of fraud or insolvency is becoming a legislative priority.
With the 2024 election cycle looming, passing comprehensive crypto legislation during this congressional session would signal bipartisan cooperation and a serious commitment to modernizing financial regulation. Conversely, failure to act could leave the U.S. behind other jurisdictions—such as the EU, which has already introduced the Markets in Crypto-Assets (MiCA) framework.
In summary, while there is momentum behind the Market Structure Bill, considerable work remains. The coming weeks will be critical as lawmakers, regulators, and industry stakeholders attempt to bridge gaps, finalize language, and push the bill toward a Senate vote. Whether or not it crosses the finish line this year, the progress made thus far reflects a growing recognition in Washington that crypto is no longer a fringe issue but a central element of the future financial system.