Paul Johnson Despite the ongoing government shutdown, lawmakers are closing in on finalizing the crypto market structure bill, with 90% of the framework reportedly agreed upon and key debates now centering on decentralized finance and stablecoin rules.
Senators Edge Closer to Crypto Market Structure Bill Amid Shutdown
The United States Senate is pushing forward on the long-awaited crypto market structure bill despite the ongoing government shutdown, signaling a rare moment of bipartisan focus on digital asset regulation. Coinbase CEO Brian Armstrong shared that nearly all major components of the crypto market structure bill are already in alignment, with the last stretch focusing mainly on how decentralized finance should be governed without hindering innovation.
Armstrong expressed optimism that the final draft of the crypto market structure bill could be ready before Thanksgiving, marking what could be a landmark step for the US crypto industry. In a recent update on X, he emphasized that the Senate’s work continues uninterrupted, even as much of Washington remains stalled.
According to Armstrong, approximately 90 percent of the legislative groundwork is complete, leaving the remaining 10 percent centered on complex issues surrounding decentralized finance. Lawmakers are said to be balancing regulatory clarity with the need to safeguard open-source innovation that powers DeFi protocols.
DeFi and Stablecoins Take Center Stage in Policy Talks
One of the central challenges in finalizing the crypto market structure bill lies in drawing boundaries between centralized and decentralized entities. Armstrong stressed that while platforms like Coinbase should be regulated, decentralized protocols should remain outside the purview of traditional financial oversight.
This nuanced approach aims to preserve the very foundation of decentralized finance while ensuring compliance and consumer protection in the centralized sector. Lawmakers are reportedly working with industry experts to develop a structure that promotes transparency and accountability without stifling innovation.
Stablecoins have also become a pivotal talking point in the crypto market structure bill, especially after the passage of the GENIUS Act earlier this year. The legislation established baseline standards for stablecoin reserves, transparency, and consumer safeguards, setting the tone for future digital currency oversight.
However, Armstrong warned that the banking lobby is attempting to roll back parts of the stablecoin framework, particularly around reward and yield distribution. He accused major banks of trying to “re-litigate” established policies, framing their efforts as a move to suppress competition in the growing digital payments sector.
Banking Industry Pushes Back Against Stablecoin Rules
While the GENIUS Act prohibits stablecoin issuers from offering direct interest payments, the law does not extend the same restriction to crypto exchanges. This technical detail has stirred strong opposition from banking groups such as the Bank Policy Institute, which argues that exchanges could use this gap to indirectly offer yield-bearing stablecoins.
The Institute claims that this structure undermines the intent of the GENIUS Act and allows exchanges to sidestep consumer protection measures. Yet industry advocates view this as an overreach, suggesting that traditional banks are reacting to competitive pressure rather than regulatory inconsistency.
According to New York University professor Austin Campbell, many in the banking sector are growing anxious about the expanding appeal of stablecoins. He noted that stablecoin holders could soon enjoy more flexible returns than conventional bank customers, which threatens the traditional banking model built on low-interest deposits.
This tension underscores a broader shift in the financial landscape as digital assets move from speculative instruments to viable payment and savings tools. The crypto market structure bill is expected to formalize how such innovations coexist with the existing financial system, potentially reshaping the balance between Wall Street and blockchain technology.
What the Final Stretch Could Mean for the Crypto Industry
If completed as planned, the crypto market structure bill could bring long-awaited clarity to one of the most contested areas of US financial policy. Clear definitions for market intermediaries, investor protections, and DeFi exemptions could help unlock institutional confidence while preventing regulatory overreach.
Armstrong’s remarks highlight a growing sense of urgency among policymakers to keep the United States competitive in digital finance. He noted that despite political turbulence, the Senate’s progress reflects an emerging consensus on how to govern the crypto economy responsibly.
For the wider industry, the crypto market structure bill represents more than just a regulatory milestone it signals a shift toward legitimacy. As the legislation nears completion, it could set a global precedent for integrating decentralized systems within a transparent, enforceable framework.
The final draft, if delivered by Thanksgiving, may determine not only the future of crypto trading in America but also the country’s leadership in the global digital asset race.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
