278 Pages, 137 Amendments: Crypto Weighs New Senate Banking Bill
Ahead of Thursday's highly anticipated markup, the crypto industry spent yesterday reviewing and reacting to the new text
Welcome to the Wednesday edition of the Crypto In America newsletter!
What you’ll read: It’s the eve of the Senate Banking Committee’s markup on market structure, and we break down where things stand. Plus, crypto policy expert Austin Campbell shares his hot takes on the pod.
The crypto industry spent all of Tuesday parsing a 278-page bill filed late Monday night by the Senate Banking Committee — the product of five months of bipartisan negotiations.
It was the first time much of the industry had seen both parties’ text in full, and reactions have been somewhat measured, with little in the way of overwhelming criticism or praise. Most stakeholders appear to be withholding final judgment until they see the outcome of amendment details offered by senators, some of which will be voted on during Thursday’s markup.
Those details hit many of the same focal points of frustration and drama in recent weeks: DeFi, now grappling with a surprise new section causing industry heartburn; stablecoin yield, which many crypto stakeholders say is already on life support; ethics, where details remain limited and a deal between the White House and Democrats has yet to be reached; and a new concern — whether the tokenization language favors traditional finance.
“There are more than a few things in here we’re concerned about, and we need to understand the scope of the amendments and whether they make things better or worse so we can really know what we’re dealing with,” one DeFi industry leader told Crypto In America.
Amendments were due at 5 p.m. yesterday, resulting in 137 separate modifications proposed by members of the Banking Committee. According to a list reviewed by Crypto In America, a handful of bipartisan amendments from Sens. Angela Alsobrooks (D-MD) and Thom Tillis (R-NC) propose further refining which permissible activities would qualify users to earn yield on stablecoins.
Revisions to DeFi language were proposed by Sens. Pete Ricketts (R-NE) and Cynthia Lummis (R-WY).
Sen. Chris Van Hollen (D-MD) proposed ethics language aimed at “preventing cryptocurrency corruption,” including a ban on government officials profiting from interests in crypto companies, as well as an anti-touting amendment that would require individuals to disclose any financial interest in advertising. Because the Banking Committee has limited jurisdiction over ethics, some of these provisions — while broadly supported by committee Democrats — are unlikely to be voted on in markup.
More than 20 amendments were put forward by crypto-skeptic Sen. Elizabeth Warren of Massachusetts, including prohibiting yield payments on stablecoins and repealing crypto-friendly guidance issued by the OCC last year.
Some proposals — like Sen. Jack Reed (D-RI)’s amendment seeking committee backing for Federal Reserve Chair Jerome Powell amid a DOJ criminal probe — have little to do with the underlying crypto legislation and offer a preview of how some committee Democrats uninterested in crypto may use the markup to push broader partisan talking points.
As White House Crypto Council Executive Director Patrick Witt told Crypto In America on Monday, ethics language, once finalized, will be added after the bill passes committee and before it is voted on by the full Senate, signaling that Thursday’s markup is just the beginning of the process.
Last night, Senate Agriculture Committee Chairman John Boozman (R-AR) announced the committee’s rescheduled markup for January 27 at 3 p.m., with bill text set to be released the week prior.
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If Market Structure Fails: Austin Campbell on How the U.S. Stays on Top
This week on the pod, we sat down with Austin Campbell, Co-Founder of Zero Knowledge Group and Adjunct Professor at NYU Stern, for a deep dive into the market structure bill and why he believes it’s unlikely to pass.
A leading voice on stablecoins, Austin breaks down the potential impact of the GENIUS Act, the banks-versus-crypto yield debate, and how U.S. regulation compares to policies abroad.
We also explore zero-knowledge proofs, why institutions remain cautious about adopting them, and the risk management lessons Austin is bringing to crypto from his background in traditional finance.
ICYMI: Our Exclusive at the White House
On Monday, the team went to the White House to sit down with Patrick Witt, Executive Director of the White House Crypto Council.
We discussed tomorrow’s high-stakes vote on market structure legislation in the Senate Banking Committee, whether bipartisan support is likely, the complexities of getting the bill to the finish line, and the administration’s crypto goals and expectations for 2026.
Remember, new editions of the Crypto In America newsletter drop every Monday and Wednesday.
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