Senate Banking Committee Republicans have presented a closing offer to the Democrats in an effort to break months of negotiation over comprehensive cryptocurrency legislation, signaling a push to finalize a deal before the current congressional session loses momentum.
Republicans are pushing for a markup in the coming week on crypto market structure legislation, while their Democratic counterparts continue to make changes to the draft text, with just days left until the proposed timeline.
According to various sources, the proposal focuses on narrowing the remaining disagreements on regulatory oversight of digital assets, consumer protections, and the division of authority between the federal regulators.
Senators View on the Proposal
Sen. Cynthia Lummis, a major advocate of the crypto legislation, said that she was aiming to release an updated draft that she considers the best effort to date by the end of the week and hold a markup on the bill next week.
“I think that we’re to the point where it’s better to go ahead with a product and mark it up next week and then give everybody a break over the Christmas break to catch their breath,” Lummis said, while presenting details of the proposal at the Blockchain Association Policy Summit.
She further added that “We’ve been engaging hours on end, and it’s just time to take a draft. A couple of things that I can sense are happening. Industry’s getting a little concerned about what’s happening behind closed doors between Democrats and Republicans. They’re ready to see a draft. Our staff are exhausted. I’m worried that tempers are going to flame. And it’s just time to reveal a product.”
The change in the market structure legislation has been under negotiation by the Senate Republicans and crypto-supporting Democrats. The upper chamber chose to tackle the bill separately from the stablecoin legislation, which was signed into law by the US President, Donald Trump, in July 2025.
What Is In the Proposal?
The offer proposes changes to a previously drafted GOP of the crypto bill, which was released in September 2025. This version of the proposal includes more than 30 revisions to Title 1 of the legislation, which deals with the legal protection and classification of digital assets. It has also included two new sections, focusing on investor protection and taking legal action against illegal finance.
The draft text, sent on Monday to a bench of four Senate Banking GOP negotiators, chaired by Tim Scott of South Carolina and Sens. Cynthia Lummis of Wyoming, Bill Hagerty of Tennessee, and Bernie Moreno of Ohio, reviewed the proposal on Tuesday.
Some of the major concerns discussed included the Democratic demands to include ethical language, aiming at the Trump family’s business in crypto, and to ensure that members of the Democratic party are also appointed to the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), for a smoother operation.
The issues regarding how to address the push from the banking institutions to prevent crypto exchanges from offering reward programs to the stablecoin holders. However, it is unclear whether the concerns and other matters discussed in Tuesday’s meeting were resolved or not.
Will the Proposal Be Approved On the Expected Timeline?
It is still unclear whether the bipartisan deal can be finalized within the timeline put forward by Scott. The lawmakers are under immense pressure as the legislative calendar is compressed, with a January 30th Federal spending deadline approaching, as well as the increasing political pressure ahead of the midterm election.
If Scott and his team manage to proceed with the markup without a Democratic buy-in, it could force the negotiators to take a public position on the bill that has yet to be modified to connect the regulations, enforcement authorities, and decentralized finances.
