A Republican-drafted market-structure bill for crypto regulation, led by the Senate Agriculture Committee, is advancing toward a markup on or around January 27, 2026, with oversight proposed for the SEC and CFTC and without Democratic backing.

The committee released its portion of the overarching crypto bill to outline how regulation will split duties between the CFTC and SEC ahead of the markup.

This draft signals a Republican-leaning approach and omits some Banking Committee provisions on stablecoins and illicit finance, signaling a limited, interim framework.

Negotiations within the Banking Committee remain challenging, especially over whether DeFi should be subject to regulated compliance and how stablecoins with consumer rewards are treated.

The bill enjoys bipartisan momentum but progress has been uneven, with industry pushback including Coinbase withdrawing support over stablecoin yield and privacy concerns.

Industry observers note the proposal creates a path for DeFi to avoid CFTC regulation and clarifies it does not regulate self-custody wallets, non-custodial DeFi interfaces, or end-user custody, instead targeting platforms that take custody or control execution.

External signals, including comments at a Swiss event and a White House adviser’s remarks, indicate rising expectations of imminent U.S. crypto regulation.

The upcoming markup is viewed as a test for the bill and could be merged with Banking Committee proposals for a Senate floor vote, with Democrats expected to offer changes first.

The framework envisions the CFTC overseeing most spot markets and classifying digital assets outside securities unless sold as investment contracts, with tokens used for payments, governance, or network fees.

Observers note potential delays in the Banking Committee’s version, pushing timelines toward February or March as negotiations continue.

Agriculture Committee staff emphasize the draft provides a concrete path for stakeholders, with final language needing approval from both Agriculture and Banking Committees before advancing.

Meanwhile, coordination among committees continues as the crypto-regulation approach evolves and the text is published for stakeholder review.