U.S. Senators are racing against time to pass landmark legislation governing the cryptocurrency market, targeting a key milestone before Thanksgiving. If successful, the bill would mark a major regulatory breakthrough for the digital-asset sector.
What’s happening
Bipartisan negotiations in the Senate are advancing a sweeping “market structure” bill aimed at regulating crypto exchanges, digital asset market infrastructure and clarifying regulatory jurisdiction.
Top executives from the crypto industry were summoned to Capitol Hill late October to press for rapid action. According to several reports, the Senate’s Banking Committee chair is hoping to move the draft out of committee before Thanksgiving in order to allow full-Senate consideration in December.
Crypto industry leaders say that as much as “90 %” of the major issues in the bill are aligned — yet the remaining disagreements remain significant.
Why this matters
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Clarity & jurisdiction: One of the main goals is to finally clarify which federal agency oversees which digital assets (for example, between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)). Senators observe that today the overlap and confusion hamper innovation and compliance.
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Industry impact: A clearer federal regulatory framework could unlock institutional investment, bolster market trust and accelerate adoption of assets like Bitcoin and other tokens. Some industry voices believe the market-structure bill could be as significant for crypto as prior legislation was for stablecoins.
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Timing: With the congressional calendar moving toward year-end and elections ahead, there’s a narrow window to deliver legislation in 2025. One senator warned that the bill could be all but “dead” if not passed by February.
The sticking points
While there is broad support for regulation, key disputes remain:
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DeFi vs centralized markets: Some Democratic lawmakers want strict oversight of decentralized-finance (DeFi) protocols. The crypto industry resists this, arguing overly broad regulation could stifle innovation. A leaked Democratic draft triggered sharp industry criticism.
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Speed vs process: Several Democrats are pushing back on deadline-driven timelines, warning that rushing could weaken oversight. For example, Senator John Kennedy (R-La.) stated on the Senate floor that “we need to move … but we need to move deliberately.”
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Political distractions and gridlock: A government shutdown and election-year dynamics are complicating legislative momentum, reducing the chances for long, deliberative hearings.
Next steps & timeline
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The Senate Banking Committee aims to mark up the bill (i.e., amend and approve it) ahead of Thanksgiving. That would open the path for full-Senate debate.
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If the Senate passes the bill, the House of Representatives must act and it must be signed into law by the President — likely pushing final passage into December if timelines hold.
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Observers say that if the window slips beyond early 2026, the legislation’s chances diminish significantly given election-year distractions.
What to watch
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Will the Senate commit to public hearings or will the bill move directly to markup? More hearings may delay the timeline but could strengthen the outcome.
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What happens with DeFi language: Will the final bill carve out protocols while focusing on custodians and exchanges — or impose broad regulation?
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How will industry reaction evolve? The support of major crypto firms could flip rapidly if the bill seems too restrictive.
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Will the bill include or exclude provisions on stablecoins, token classification, consumer protections, and jurisdictional clarity?
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Market reaction: Crypto-asset prices, institutional investment flows and trading volumes may respond to signals of regulatory clarity or further delay.
In conclusion
The push by U.S. Senators to pass a crypto market-structure law before Thanksgiving is a pivotal moment for the digital-asset industry. A successful legislative outcome could provide the regulatory clarity that many firms and investors have long sought. But the path is narrow: disagreements remain, and the clock is ticking. If lawmakers can deliver, the U.S. may reset its crypto-regulatory landscape. If not, the momentum may stall — perhaps until after the next election cycle.
