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Senate Banking Chair Tim Scott and his staff met privately with crypto executives from Coinbase, Kraken, Chainlink, a16z, and Ripple to refine market structure legislation, ahead of the delayed formal markup, which is now expected in early 2026.
This news follows confirmation from a committee spokesperson on Monday that the Banking Committee will not hold a hearing to mark up the text before its members leave for Christmas break tomorrow. Instead, plan to track it for early 2026.
Democrats continue to push for more time
Before the crypto execs, the Senate Banking Committee met with top bank CEOs. The South Carolina Republican met with Bank of America’s Brian Moynihan, Citi’s Jane Fraser, and Wells Fargo’s Charlie Scharf to discuss the landmark legislation.
According to an insider, two meetings took place separately, one with Democrats and another with Republicans. They discussed yield, decentralized finance, and anti-money laundering concerns.
As reported by Cryptopolitan, intense negotiations have been ongoing between Senate Republicans and Democrats over key details in the bill. Senator Mark Warner noted that there are still wide areas of disagreement between both sides, saying lawmakers don’t even have an agreed-upon language for some sections.
Jeff Naft, a spokesperson for the South Carolina Republican, stated in a press release that the panel is continuing to negotiate and looks forward to a markup in early 2026. “Chairman Scott and the Senate Banking Committee have made strong progress with Democratic counterparts on bipartisan digital asset market structure legislation,” he stated.
Democrats have continued to push for more time for the talks to play out. In the crypto execs meeting, Democratic senators were invited to the gathering, but it is unclear who has attended. It is also unclear whether further changes will be made following today’s meeting.
Stablecoins become an obstacle to passing the crypto market structure bill
Crypto assets that pay out returns, especially stablecoins, have made it hard to pass a bigger crypto market structure bill. Banks have stated that the GENIUS stablecoin bill, which became law over the summer, requires revision because it doesn’t encompass all necessary provisions.
They say the problem is that the stablecoin law doesn’t do enough to stop stablecoin issuers from paying interest to holders. This could make these assets more appealing as credit and value stores, rather than just a means of payment, which would “distort market incentives” for the banking sector.
Additionally, banking groups have stated that the GENIUS Act’s limits are easily circumvented by exchanges, brokers, and other affiliates.
The FDIC’s Board of Governors decided on Tuesday morning to allow the public to comment on its process for banks that wish to issue stablecoins through their subsidiaries for 60 days. The proposal explains how insured banks can apply, how the agency will review applications, and what appeal options exist for those who are turned down.
Acting Chair Travis Hill, who could be confirmed in the Senate as early as this week, stated that after these rules are finalized, the FDIC will develop a more detailed framework. It will spell out its standards for stablecoin issuers in terms of capital, liquidity, and risk management.
Governor Christopher Waller plans to give Custodia a master account
Wyoming crypto bank Custodia is set to secure a Federal Reserve master account. On Monday, the bank filed a petition where it asked the full Tenth Circuit to reconsider its October decision that sided with the Fed in denying Custodia a master account.
The petition states that the original panel of three judges misinterpreted the Monetary Control Act. According to Custodia, this law gives any eligible bank the right to a master account. However, the petition argues that this grants the Fed “unreviewable discretion” over who can access its payment rails.
Meanwhile, Governor Christopher Waller, who President Trump is interviewing for the job of Fed Chair, wants to give companies like Custodia access to a “skinny” master account. This is a limited version of a full master account, designed to make it safer for crypto firms to use the payment system.
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