WASHINGTON — A key Senate panel is preparing to take up sweeping cryptocurrency legislation, with a markup expected later this spring that could advance long-stalled efforts to establish a regulatory framework for digital assets.
Sen. Cynthia Lummis (R-WY) said the Senate Banking Committee plans to hold a markup on a market structure bill following the Easter recess, according to reporting by The Block. “We’re going to mark it up in April,” Lummis said during remarks at the DC Blockchain Summit in Washington.
The effort comes after months of delays and disagreements over how to regulate the rapidly evolving crypto industry. Lawmakers are seeking to clarify oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission, as well as define when digital assets qualify as securities or commodities.
The legislation would also establish new disclosure requirements for crypto firms.
Progress has been uneven across Capitol Hill. The House previously passed a similar measure — the Clarity Act — with bipartisan support. Meanwhile, the Senate Agriculture Committee, which oversees the CFTC, advanced its own version earlier this year along party lines without Democratic backing.
A planned January hearing in the Senate Banking Committee was canceled at the last minute after Coinbase withdrew its support for the bill.
Stablecoin Debate Remains Central
One of the most contentious issues in negotiations has been whether stablecoin issuers or affiliated platforms should be allowed to offer yield — or interest-like rewards — to users.
The issue was partially addressed in the GENIUS Act, enacted last year, which prohibits stablecoin issuers from paying direct interest to holders but allows third-party platforms to offer rewards.
Lummis said disagreements over yield have been a major sticking point, though she expressed optimism that lawmakers are nearing a compromise.
“We got hung up on things that I did not expect we would,” she said.
Industry Divide
The debate reflects broader tensions between traditional financial institutions and crypto firms.
Banks have warned that allowing yields on stablecoins could pull deposits away from traditional accounts, potentially weakening funding sources for lending — a concern closely watched by community banks and credit unions.
Crypto companies, by contrast, argue that limiting yields would hinder innovation and reduce the appeal of digital assets.
According to The Block, the White House has held multiple meetings in recent weeks to broker a deal, though no final agreement has yet emerged.
If the Senate Banking Committee advances the bill, it would mark a significant step toward comprehensive federal regulation of the cryptocurrency market.
