Legislative process rebooted! The US Senate will discuss the Cryptocurrency Market Structure Act this week.

Two Senate committees in the United States are planning to hold a revised hearing on a cryptocurrency market structure bill this Thursday. After the legislative process was delayed last year due to a federal government shutdown, this move restarts efforts to push the legislation through. The Senate Banking Committee and Agriculture Committee will each prepare a new version of the bill. The bill was passed by the House of Representatives in July of last year. The committees will discuss and make modifications to the details of the bill at the revision hearing. The bill, named the Digital Asset Market Clarity Act of 2025, defines "digital commodities" as digital assets whose value is "intrinsically linked to the use of blockchain." This definition excludes securities, derivatives, and stablecoins. The bill clarifies the division of responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating cryptocurrencies, and outlines the registration and compliance standards that entities in the crypto space must follow. Senator Tim Scott, chairman of the Senate Banking Committee, said: "The core goal of this bill is to make the United States a global center for the cryptocurrency industry - to create jobs for the next generation and innovate domestically rather than overseas. When we establish clear regulatory rules, we can inject confidence into entrepreneurs and empower them to start businesses, hire employees, and grow here in the United States." Alex Thorn, research director at Galaxy Research, said that the discussion about whether to include decentralized finance (DeFi) in anti-money laundering regulations could be the most impactful issue. He noted, "Other ongoing negotiations include how to handle the revenue generated from stablecoin reserves, protections for non-custodial developers, and the SEC's authority to authorize or restrict token issuances." He added, "If a bipartisan cryptocurrency market structure legislation can be passed that clearly defines token classifications, clarifies regulatory authority, and protects developers and non-custodial protocols, this will be a significant catalyst for driving cryptocurrency adoption." However, investment bank TD Cowen stated that while there is room for progress on cryptocurrency market structure legislation this year, it is more likely to be postponed until 2027 and the final rules may not take effect until 2029. The bank cited the main obstacle being disputes over conflict of interest clauses: Democrats are pushing to restrict senior officials (including former President Trump) and their families from holding or operating cryptocurrency businesses. To facilitate the passage of the bill, this provision may be postponed for about 3 years to avoid applying to Trump. Coinbase Pressures Stablecoin Rewards Clause Becomes Focus of Gamble It is worth noting that the largest U.S. cryptocurrency exchange, Coinbase (COIN.US), is increasing its lobbying efforts with U.S. lawmakers, trying to preserve its business model of providing rewards to stablecoin holders in the upcoming cryptocurrency market structure bill that is about to enter the Senate deliberation stage. Insiders said that if the bill introduces restrictions in the rewards mechanism beyond disclosure requirements, Coinbase may reconsider its support for the bill. It is reported that Coinbase invests the US dollar stablecoins (USDC) left by users on the platform to earn interest, and then distributes a portion of the interest to users as "rewards." Banks are concerned that this is equivalent to "high-interest gathering" without the constraints of reserve requirements, FDIC insurance, etc. Coinbase insists that this is only a "marketing incentive," not "interest on deposits." Therefore, if the cryptocurrency market structure bill defines it as a "deposit" or prohibits third parties from paying interest, Coinbase's stablecoin interest income will be significantly reduced. According to industry sources, the proposed bill currently in the works aims to strictly limit reward distribution to regulated Financial Institutions, Inc. Some in the banking industry support this, believing that similar practices by Coinbase could divert traditional banking deposit volumes. However, Coinbase has applied for a national trust license, which, if approved, would allow it to comply with regulations and offer user rewards. Native crypto companies are vigorously seeking exceptions that would allow platform reward models to continue without a license, and warn that implementing broader restrictions could completely disrupt the existing industry competition landscape.