U.S. Senators Resume Crypto Bill Talks Ahead of Senate Banking Committee Markup

U.S. senators met Tuesday to restart negotiations on the highly anticipated crypto bill that aims to establish a clear market structure for digital assets, according to sources familiar with the discussions. While no agreements were reached on key points, the talks signal renewed momentum for crypto legislation in 2026.

Senate Banking Committee Prepares for Markup Next Week

Senator John Kennedy told Punchbowl News that Senate Banking Committee Chairman Tim Scott is planning a bill markup on January 15. An updated draft of the legislation would likely be released before the markup, although the most recent version was circulated months ago. If the markup occurs next week as suggested, it could help avoid some of the political pressures from the upcoming federal spending deadline on January 30, which risks another government shutdown.

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Debates Over Ethics, DeFi, and Crypto Yield

Negotiators continue to face significant disagreements. Democrats involved in Tuesday’s meeting are pushing for ethics standards to prevent senior government officials from profiting from digital asset activity, referencing concerns about President Trump’s past crypto dealings. They are also seeking regulations on decentralized finance (DeFi) platforms and limits on crypto yield, which could affect how the industry competes with traditional banks.

On Tuesday, the banking industry also reiterated its strong interest in using this bill to revisit last year’s Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, aimed at stopping crypto affiliates from paying yield on stablecoins. This has been a months-long lobbying battle between banks and crypto firms, and the outcome of the Senate negotiations could determine which sector gains the upper hand in stablecoin regulation.

Heightened Urgency for Crypto Legislation

The Senate faces mounting pressure to act quickly. The House of Representatives has already passed its Digital Asset Market Clarity Act, leaving the Senate as the final step for federal crypto regulation. Lawmakers are also racing against the January 30 deadline for a federal spending plan, while the 2026 midterm elections add further constraints to the legislative calendar.

Trump’s crypto advisor, David Sacks, had indicated last month that Scott was committed to a January markup, though no official confirmation has been made publicly. If the markup proceeds next week, it could set the tone for the year’s crypto regulatory landscape and determine whether bipartisan agreement is achievable.