Crypto Market Structure Bill Update: January Markup Confirmed By White House Crypto Czar

Washington's crypto czar just dropped the date—January markup confirmed. The long-awaited market structure bill gets its first real legislative haircut.

What's Actually Happening

Forget vague promises. This is procedural concrete. A 'markup' session means lawmakers tear the draft apart line-by-line—amending, adding, and potentially gutting provisions before anything goes to a vote. It's where theoretical frameworks meet political reality.

The Stakes For Your Portfolio

Clarity cuts through uncertainty. A coherent federal framework could bulldoze the current patchwork of state-level regulations that strangle innovation and confuse investors. It defines which digital assets are securities, which are commodities, and who gets to police them. That's the kind of regulatory certainty that traditional capital has been waiting for—the signal to move from sidelines to allocation.

Why The Timing Isn't Random

Markets don't wait for perfect legislation; they price in momentum. A confirmed timeline shifts the narrative from 'if' to 'when.' It tells institutional desks that U.S. policy, often a lagging indicator, is finally trying to catch up to the asset class. Watch for pre-markup positioning—the smart money starts building exposure before the headlines hit retail feeds.

The Bottom Line

This isn't just bureaucratic noise. It's the machinery of law grinding forward—slow, ugly, but undeniable. Progress here could unlock the next wave of institutional adoption. Or, as any seasoned trader knows, it could just be another expensive lesson in betting on Washington's ability to get anything done on time.

Markups For Crypto Market Structure Bill Set For January

In a recent post on the social media platform X (formerly Twitter), Sacks shared insights from a fresh meeting with Senate Banking Committee Chair Tim Scott, indicating that a markup for the CLARITY Act is slated for January. 

The CLARITY Act is designed with a Core framework that classifies digital assets into three categories: digital commodities, overseen by the Commodity Futures Trading Commission (CFTC); investment contract assets, regulated by the Securities and Exchange Commission (SEC); and permitted stablecoins. 

This structure aims to establish distinct regulatory roles for the CFTC and SEC, require registration for cryptocurrency exchanges, define Qualified Digital Asset Custodians (QDACs) with strict key management protocols, and introduce anti-money laundering (AML) and know-your-customer (KYC) rules.

However, the bill has faced delays over recent months, primarily due to an extended US government shutdown and ongoing negotiations between Democratic and Republican lawmakers. 

As recent reports by Bitcoinist have indicated, Democrats are advocating for additional time to discuss various crucial issues, including market integrity, financial stability, and ethical considerations surrounding President Trump’s family’s business dealings in the crypto space.

Despite these hurdles, a spokesperson for Chair Scott emphasized the significant progress made by the Senate Banking Committee in creating a robust regulatory framework. 

Meanwhile, the crypto industry is also striving to address concerns regarding the recently passed GENIUS Act, which includes provisions that could exert further limits on stablecoins. 

Contention Grows Over GENIUS Act 

A letter led by the Blockchain Association, signed by over 125 industry players, criticized attempts to reinterpret and expand the existing prohibition on interest linked to stablecoins within the GENIUS Act.

Signed into law by President TRUMP in July, the GENIUS Act aims to establish a regulatory framework for dollar-backed digital tokens, which are widely known as stablecoins. The act contains a provision that prevents stablecoin issuers from offering “any form of interest or yield.” 

This aspect has ignited a contentious debate between the crypto and banking sectors regarding the extent of the interest prohibition and whether adjustments are necessary.

Banking representatives argue that the prohibition on interest should extend to other entities that provide rewards to stablecoin holders, labeling any attempt to exclude them a “loophole” that contradicts the law’s original intent. They also lobbying Congress to revise the GENIUS provisions as part of the crypto market structure bill.

Featured image from DALL-E, chart from TradingView.com