Washington, May 20, 2026, 11:02 EDT
US crypto market legislation that cleared a Senate committee is facing pushback from decentralized-finance developers after a last-minute amendment. The new language could drag more software projects under securities law. The debate has shifted from the committee vote to the text that could determine the bill’s fate.
Digital Asset Market Clarity Act advanced out of the Senate Banking Committee last week by a 15-9 tally, putting the crypto bill on track for a floor battle in the full Senate. The key point is the measure has left committee and now needs real bipartisan votes if it is going to clear the Senate.
“Market structure” is on the line – that’s the map for who oversees crypto trading and token sales. The bill draws lines for what counts as a security, commodity or something different, spelling out which regulator handles what. That would mean dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, a move crypto firms have pushed for after years of asking for clear rules. Reuters
Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland—Democrats who sided with Republicans in committee—are holding off on floor support. Gallego pointed to ongoing work on ethics rules. Alsobrooks said lawmakers still face “so much work to do.” Roll Call
Senate lawmakers are calling some network tokens “ancillary assets” in their draft, putting a line between the token and the fundraising contract behind it. A committee summary said the Regulation Crypto carveout would allow some issuers to raise capital without the full public-company securities rules, but would keep initial and semiannual disclosure requirements.
Senate Banking Committee Chair Tim Scott, a Republican from South Carolina, said the vote showed negotiators still had room to make a deal. Scott said the bill sets out “clear rules” and “stronger safeguards” for digital assets, calling it a way to bring the sector into the open. Senate Banking Committee
Senator Elizabeth Warren, the leading Democrat on the committee, disagreed. She called it a “pro-industry crypto bill” and warned it would risk consumers, national security and the financial system, saying the panel’s move shows how tough it could be to get more Democrats on board. Senate Banking Committee
Stablecoins are still a focus for the banking lobby. These crypto tokens aim to keep a fixed value, generally one dollar. The committee draft stuck with a ban on rewards that are “economically or functionally equivalent” to bank deposit interest. Bank groups claim possible loopholes could still draw money out of regular accounts. Banking Dive
The bill is also in focus for crypto stocks including Coinbase, Robinhood, and Circle, which often move as Washington acts on crypto. Shares saw an early pop, then fell along with the rest of the risk trade. Sean Farrell, head of digital assets strategy at Fundstrat, said he was “not rushing to make major adjustments” even with Congress making progress. Investopedia
The White House is pushing for urgency. Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, told reporters earlier this month that the administration is targeting July 4 for passage and called the stablecoin-yield compromise “closed.” But Witt also said there’s “not a lot of slack left in the rope.” CoinDesk
There’s an obvious risk here: talk of ethics, anti-money-laundering rules, and decentralized finance — trading or lending by software with no central party — could still lose support. The Banking Committee’s bill also needs to be combined with the Senate Agriculture Committee’s work before it can get a vote in the full Senate. After that, the bill would still have to go through the House.
Crypto has momentum in Congress but no law yet. Cody Carbone, who leads the Digital Chamber, called the coming three weeks in committees “going to be insanity,” summing up the bill’s spot — alive, under pressure, not done. CoinDesk
