Lummis Aims to Break Crypto Regulation Deadlock Before Holidays

U.S. Senator Cynthia Lummis said this week that long-stalled federal legislation to establish a clear market structure for digital assets could advance to a critical procedural stage before Congress breaks for the holidays.

Speaking at the Blockchain Association Policy Summit, Lummis said she expects the Responsible Financial Innovation Act to move into a markup hearing sometime next week. 

A markup hearing allows lawmakers to propose amendments and revisions before a bill is sent to the full Senate for debate and a vote.

Lummis, a member of the US Senate Banking Committee, has long been one of Washington’s most vocal advocates for comprehensive crypto legislation. She acknowledged that frustration has been growing within the digital asset industry over the pace of progress.

Draft Expected This Week Ahead of Markup

Lummis said her objective is to release what she called the strongest version of the bill so far by the end of this week. The draft will then be reviewed by industry participants as well as both Republican and Democratic lawmakers before heading into markup.

“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,” she said.

The Banking Committee previously released a discussion draft of the market structure bill in July, shortly after the Digital Asset Market Clarity Act passed the U.S. House of Representatives. 

Momentum soon faded, however, due to the longest government shutdown in U.S. history and reported pushback from some lawmakers over the bill’s handling of decentralized finance.

A Monday report from Politico indicated that bipartisan negotiations have regained traction, with tentative plans for a December markup. Lummis has previously said she believes the legislation could ultimately be signed into law by 2026.

Even so, the timeline remains uncertain. Lawmakers caution that partisan divisions, committee jurisdiction disputes and broader election-year dynamics could still slow the bill’s path to the Senate floor.

Why Market Structure Matters to the Crypto Industry

For the crypto industry, the stakes surrounding market structure legislation are significant. The bill is intended to clarify how digital assets are classified, which federal agencies oversee different segments of the market, and how exchanges, brokers and custodians must operate.

For years, companies have operated under what many describe as a regulation-by-enforcement model, with the federal government relying primarily on lawsuits rather than clearly defined rules. Industry leaders argue that this approach has driven innovation offshore and created legal uncertainty for U.S.-based firms.

“More and more finance will move onchain under the leadership of [SEC Chair Paul Atkins] once a market structure is passed into law by Congress,” said Paul Grewal, chief legal officer at Coinbase. “Our leaders need to align on the last details in the bill without delay.”

A Potential Shift in Regulatory Authority

Although the final Senate text has not yet been released publicly, previous drafts suggest the legislation would expand the authority of the Commodity Futures Trading Commission over digital assets. 

That would mark a major shift from the current regulatory landscape, which has largely been shaped by enforcement actions from the Securities and Exchange Commission.

Granting the CFTC greater oversight is widely viewed as a more market-friendly approach, given the agency’s history of regulating derivatives through principles-based frameworks rather than aggressive litigation. 

However, the transition could also raise complex questions about how the two agencies coordinate enforcement and supervision going forward.

Some lawmakers have expressed concerns that decentralized finance protocols could be swept too broadly into regulatory obligations originally designed for centralized intermediaries. Those unresolved issues were among the factors that slowed negotiations earlier this year.

Momentum Builds, But Uncertainty Remains

Lummis’ push for a near-term markup suggests Senate leadership may be willing to advance a workable framework even if some details remain imperfect. 

If a markup hearing does take place next week, it would represent the most tangible legislative progress on U.S. crypto market structure in months.

For an industry that has endured years of regulatory ambiguity, shifting enforcement priorities and court battles, even a procedural step forward could prove pivotal. While significant political hurdles remain, the move would signal that Congress is once again seriously engaging with the challenge of bringing digital asset markets under a coherent federal regulatory framework.