Market Structure Proposals May Not Capture Crypto Momentum In Congress

WASHINGTON, DC - JULY 18: U.S. President Donald Trump, surrounded by lawmakers, signs the “GENIUS ... More Act” into law during a ceremony in the East Room of the White House July 18, 2025 in Washington, DC. The act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, was passed this week by the U.S. Congress. (Photo by Win McNamee/Getty Images)

Getty ImagesThe cryptocurrency industry has achieved its most significant win in Congress to date, winning passage of the GENIUS Act, which would regulate stablecoins, earlier this month. Now, lawmakers and lobbyists are looking to capitalize on the momentum to pass other bills into law. However, the targets for doing so, with the most notable measure being a bill to formalize digital asset market structure rules, are likely to prove tougher to send to President Donald Trump’s desk. Support from Senate Democrats for the cryptocurrency means there is a chance of doing so, but the process is likely to take several months and could stretch into 2026.

Stablecoin legislation was always perceived as the low-hanging fruit for Congress on crypto, making its passage a key bellwether for the amount of bipartisan support for digital assets legislation. Market structure legislation, on the other hand, is seen as a much more complex undertaking. This is in part because some of the divides between lawmakers concern building-block definitions of the proposals, such as which tokens are considered commodities and which are securities. The answer to this question will determine whether the Securities and Exchange Commission or the Commodity Futures Trading Commission will be responsible for overseeing a given token.

In addition to debates over the text, there are possible political issues that could slow the progress of market structure legislation. One of these hurdles was on display during the House’s crypto week in July, when conservative Republicans held up proceedings to advocate for the Anti-CBDC Surveillance State Act, a measure that divides lawmakers along party lines, to have a path to law. The concession, as reported by Punchbowl News, was for the House to include the proposal in its draft of the annual defense policy bill. However, it could still be stripped out by the Senate and reignite this debate when future crypto legislation is considered. Another challenge will be Trump’s crypto businesses, with some early Democratic supporters of stablecoin legislation in the Senate, such as Senator Adam Schiff (D-Calif.), expressing reservations about the market structure bill in a recent hearing due to the president’s involvement in the cryptocurrency sector.

Still, there are reasons for optimism that the current Congress will be able to pass crypto market structure legislation, even if the process is longer than some lawmakers would like. Notably, the House version, the CLARITY Act, attracted support from nearly 80 Democrats, a sign of the bipartisan interest in addressing the issue. Additionally, some of the newer Senate Democrats, including Senators Angela Alsobrooks (D-Md.), Ruben Gallego (D-Ariz.), Andy Kim (D-N.J.), and Lisa Blunt Rochester (D-Del.), appear to be potential supporters, with some having backed the Financial Innovation and Technology for the 21st Century Act last year. These members are joined by Senator Kirsten Gillibrand (D-N.Y.), who has been leading Democratic support in the upper chamber this year. At least seven Democrats will need to support the measure for it to pass the Senate, with this group of lawmakers likely to be among those Republicans look to for support.

With the House having passed its version of market structure legislation, the fate of the bill is now in the Senate’s hands. However, the upper chamber does not appear to plan to take up the House-passed version simply, which Senator Amy Klobuchar (D-Minn.), the top Democrat on the Senate Agriculture, Nutrition, and Forestry Committee, voiced concerns about in a recent hearing. Instead, leading Senate Republicans released a discussion draft, accompanied by a request for industry feedback, earlier this week. The text includes some differences from the House proposal, such as the creation of a new category of digital tokens called “ancillary assets.”

MORE FOR YOUSenate Banking, Housing, and Urban Affairs Committee Chair Tim Scott (R-S.C.) has said he hopes to pass the measure in the upper chamber by the end of September. However, pushback from Democrats could delay this process, even if the bill can be passed by the committee before then. Scott had pushed for a similarly ambitious timeline for the stablecoin bill, aiming to pass it within the first 100 days of Trump’s presidency, and, likely, he will again miss this target. A more realistic goal could be the passage of market structure legislation in the Senate by the end of the year, but achieving this will depend on the ability to garner support from Democrats, as none are currently sponsoring the measure.

What will ultimately get sent to Trump’s desk is more likely to resemble whatever the Senate ends up passing, making it a process well worth following closely. When lawmakers return in September after the August recess, committee action in the Senate Banking, Housing, and Urban Affairs Committee and the Senate Agriculture, Nutrition, and Forestry Committee will offer critical insight into just how likely Democratic support is and what it may take to garner the votes needed for market structure legislation to reach Trump’s desk.