The US Senate is delaying progress on a crypto market regulation bill.
Date: 2025-12-12 Author: Gabriel Deangelo Categories: IN WORLD
Intense debate continues in the US Senate over a bill that would define the future regulatory architecture for the crypto market. The process has slowed significantly after Democratic senators submitted an updated list of demands to Republicans, effectively blocking further progress with limited time remaining before the end of the legislative session.
The bill, which is being developed, would delineate powers between the SEC and the CFTC, establish transparency standards for digital assets, and create a regulatory framework for stablecoins and market infrastructure. However, both parties remain divided over key principles of oversight of the crypto sector.
Democrats have sent their opponents a document they claim will help align their positions before the bill is submitted to a relevant committee. Their demands include additional measures to protect the stability of the financial system, stronger oversight of illegal transactions, and new mechanisms to prevent abuse by crypto platforms that bill themselves as "decentralized."
Democrats also advocate expanding disclosure obligations for digital assets and secondary markets, limiting revenues from stablecoins to prevent a drain on local banks, and implementing regulations prohibiting government employees from participating in crypto projects for profit. This provision is particularly controversial amid discussions about President Donald Trump's family's business ties to the crypto industry, although the administration maintains there is no conflict of interest.
Republicans, for their part, insist the bill is ready for consideration, but Democrats are refusing to support the scheduled session to introduce amendments. The fact that the Senate calendar is drawing to a close adds to the tension. If the debate is postponed until January, it will increase political pressure ahead of the midterm elections and could complicate the passage of the temporary budget, which expires on January 30, 2026. A possible government shutdown threatens to delay work on crypto regulation indefinitely.
Meanwhile, the House of Representatives has already moved forward with its own bill, the Digital Asset Market Clarity Act, and is insisting that the Senate use it as a basis. However, senators are continuing to formulate an alternative version.
Adding importance to the issue is the meeting between senators and the heads of major US banks, scheduled for December 11. The meeting is scheduled to discuss the risks of stablecoins, competition between crypto exchanges and traditional financial institutions, and the supervisory powers of the SEC and CFTC.
Amid these disagreements, the previously introduced Responsible Financial Innovation Act of 2025, proposed by a group of senators this summer, is also in danger of missing its initial deadline for submission to the president for signature.
The situation remains tense, and the future of federal regulation of the crypto market remains uncertain.
