The Senate Banking Committee announced it will not hold a markup on the market structure bill this week, underscoring lawmakers’ ongoing debate and the tight timeline ahead. With passage increasingly unlikely within the current year, attention shifts to 2026 as the window to complete the process before the midterm elections. Markup—the formal hearing where amendments are proposed and shaped before a full Senate vote—remains central to how the legislation will be framed.
Key issues in play include how to define and regulate decentralized finance, how to handle stablecoin yields, and whether major regulators such as the SEC or CFTC will be led by bipartisan appointees. The discussions also touch on potential ethics commitments affecting presidents and other officials, a factor that could complicate the bill’s path if framed as partisan. Beyond politics, misdefining decentralization could complicate future revisions given the sector’s technical implications.
The House has already passed its market structure bill, while the Senate is working to blend a competing version. Democratic lawmakers emphasize the need for DeFi regulatory guardrails before backing the legislation, and some warn that the White House has resisted certain terms, adding sensitivity as the 2028 campaign cycle approaches. If committees finalize a compromise and the Senate schedules a markup in early 2026, supporters hope to complete the full process before the vacation period; otherwise, the likelihood of a 2026 law diminishes.
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