Senate Banking Committee eyes April vote on crypto market structure bill, Sen. Lummis says

A pivotal Senate panel plans to hold a hearing to amend and vote on a broad cryptocurrency market structure bill, potentially unlocking the next step to pass legislation.  

The Senate Banking Committee will hold that markup before the end of April, Sen. Cynthia Lummis, R-Wyo., told an audience at the DC Blockchain Summit in Washington, D.C. 

"We're going to mark it up in April, we're going to mark it up after the Easter recess," Lummis said. 

The committee has faced multiple hurdles over the past year. Broadly, a future bill would clarify regulatory jurisdiction between the Commodity Futures Trading Commission and the Securities and Exchange Commission, define when digital assets qualify as securities or commodities, and establish new disclosure requirements. 

Last year, the House passed its version of a crypto market structure bill with bipartisan support called the Clarity Act. In January, the Senate Agriculture Committee, which has oversight over the CFTC, passed its version along party lines with no Democrats in support.

The Senate Banking Committee had been scheduled to hold a hearing in January to advance its own bill, but the session was canceled at the last minute following a decision by Coinbase to withdraw its support.

Contentious crypto market structure issues

One of the most contentious issues in negotiations has been whether stablecoin issuers or related platforms should be allowed to offer yield to users. The issue was addressed in a stablecoin law known as GENIUS, passed in July, which bars stablecoin issuers from paying direct interest to holders. The law does not prohibit third-party platforms such as Coinbase from offering rewards.

"We got hung up on things that I did not expect we would," Lummis said on Wednesday, adding that the stablecoin yield negotiations have become the biggest issue, but said that she believes a compromise has been reached. 

Banks have argued that allowing yields would drain deposits from traditional institutions and hurt community banks. Crypto firms, meanwhile, have said restricting such yields would stifle innovation. The White House has held three meetings over the past few weeks in an effort to negotiate the issue, but so far, no solid agreement has been reached.

Decentralized finance has also become a leading issue, particularly among Democrats who have voiced concerns over illicit finance concerns. Democrats have also voiced concerns over President Donald Trump's conflicts of interest in crypto, given that he and his family are tied to crypto platform World Liberty Financial, which launched a stablecoin last year. 

On Wednesday, Lummis said she believes issues around DeFi "have been put to bed." 

Both Senate committee bills would need to be combined before heading to a full Senate vote. Ahead of that full Senate vote, Lummis said lawmakers will also have to deal with the ethics issue after the bill is passed out of the Senate Banking Committee. 

If a bill passes the Senate, the House's version would still need to be addressed before one final version heads to President Donald Trump's desk to be signed into law. 

On Wednesday, Sen. Bernie Moreno, R-Ohio, warned that the next couple of months will be "absolutely critical."

Republicans and Democrats face off

Lawmakers face midterm elections in November, which tends to change political calculus as they turn their attention to winning their races. The House and Senate could also flip from Republican to Democrat, bringing new leadership to key committees.

Lummis has also stated that she won't be running for re-election.  

"If we don't get the Clarity Act passed by May, digital asset legislation will not pass for the foreseeable future," Moreno said.