Countdown to Markup: The Latest on Crypto Market Structure
What senators are saying a week out and industry's big lobbying push
Welcome to the Wednesday edition of the Crypto In America newsletter!
What you’ll read: Where Senate Banking and Ag markups stand, why DATCOs may not be totally out of the woods, some big headlines, and an interview with Helium’s CEO.
With just over a week until the Senate Banking Committee is set to mark up the latest version of its market structure text, members and their staff are scrambling to reach bipartisan consensus on the same unresolved issues that have plagued the process for months.
Ethics rules for public officials relating to crypto, stablecoin yield, bipartisan representation at crypto regulators, and several DeFi-specific provisions were key topics of discussion Tuesday at a meeting in Banking Committee Chair Tim Scott’s office, attended by 13 pro-crypto senators.
In addition to Sens. Katie Britt (R-AL), Thom Tillis (R-NC), Catherine Cortez Masto (D-NV), Cynthia Lummis (R-WY), Tim Scott (R-SC), Bill Hagerty (R-TN), Bernie Moreno (R-OH), John Kennedy (R-LA), Ruben Gallego (D-AZ), Mark Warner (D-VA), Kirsten Gillibrand (D-NY), Angela Alsobrooks (D-MD), and John Hickenlooper (D-CO), White House Crypto Czar David Sacks and Executive Director Patrick Witt were also in the room.
While it’s not immediately clear how many of the remaining issues, if any, were resolved in the three-hour meeting, both Republican and Democratic senators are signaling optimism that the bill could win support from both sides of the aisle.
“We’ve solidified core provisions of the Responsible Financial Innovation Act, and I believe we’re close to agreeing on final text that will earn strong bipartisan support,” Senator Lummis told Crypto In America.
Moderate Democrat Catherine Cortez Masto also sounded positive after the meeting. “We’re still having conversations, but it’s been very productive — open on both sides to working through all of the issues,” she told Politico.
Senator Tillis struck a more cautiously optimistic tone, telling Punchbowl News, “There’s still a lot of open questions, but we’ve got a week to get it done.”
Senator Scott, meanwhile, confirmed Crypto In America’s reporting of a January 15 markup, telling Breitbart News it’s a key step toward affordability through economic democratization.
Crypto In America reached out to Senator Warner’s office for comment but did not receive a response. Senator Gallego’s office declined to comment.
Meanwhile, the Senate Agriculture Committee is reportedly preparing for its own markup next week, though a date has not yet been set, according to sources briefed on the matter.
“There’s a lot of pressure on Chairman Boozman to move next week to avoid the politics of a potential shutdown during the last week of the month,” one source said, noting a partial government shutdown could occur on January 30 if Congress doesn’t pass another spending package.
Updated text addressing the digital commodities side of the bill could come as soon as this week, the source added, reflecting revisions to the discussion draft first circulated in November. It’s still unclear how many changes have been made or whether the markup will be bipartisan.
A committee spokesperson did not immediately respond to a request for comment.
Industry Turns Up the Heat
As senators negotiate from within, industry is ramping up lobbying efforts this week to make its voice heard on the remaining outstanding issues.
On Thursday, the Digital Chamber will hold a fly-in on Capitol Hill, bringing more than 40 members to lobby the Senate. The event starts at 10 a.m. and features speakers including White House Crypto Council Executive Director Patrick Witt and Republican Senator Cynthia Lummis of Wyoming. Representatives from firms expected to participate include Unicoin, Anchorage Digital, eToro, Coinflip, Input Output Group, Arca, Bitdeer, Binance.US, Crypto.com, VanEck, Hedera, Mara, and Helium.
In addition, a select group of industry leaders will meet privately with senators throughout the week to discuss some of the unresolved issues relating to DeFi and stablecoin yield.
The fight over yield is heating up again as markup approaches. The American Bankers Association’s Community Bankers Council warned senators in a letter Monday that a loophole in the GENIUS Act allowing crypto firms to offer rewards to stablecoin holders could siphon trillions from community bank deposits.
The crypto lobby has pushed back hard, accusing banks of protecting their own turf and arguing that stablecoins don’t pose a credible threat to traditional deposit funding.
Last year, the Blockchain Association rallied more than 125 crypto firms to urge Congress to keep the GENIUS Act intact and leave the yield issue closed.
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MSCI To Keep DATs…For Now
Leading index provider MSCI delighted the Bitcoin community Tuesday by announcing it would not proceed with a proposal to exclude digital asset treasury companies (DATCOs) from its indexes, a plan that had been causing heartburn for the industry for months.
This means that firms like Michael Saylor’s MicroStrategy, which holds around 674,000 BTC worth tens of billions of dollars, will remain in MSCI’s global benchmarks as part of its February 2026 review, as long as they continue to meet existing eligibility requirements.
Crypto-heavy firms like Saylor’s were sweating MSCI’s DATCO proposal, fearing that being booted from global indexes could trigger forced stock sell-offs and knock-on effects for their Bitcoin holdings. With the plan paused, that pressure is off… at least temporarily.
In its press release, MSCI said it plans a broader review of non-operating companies, meaning DATCOs aren’t completely off the hook yet as the index provider works to separate operating businesses from investment-focused holdings.
Still, the crypto community is taking it as a win, with many supporters, including Saylor himself, taking to X to celebrate the announcement.
Building Helium: From Esports to 5G with Amir Haleem
This week on the pod, we sat down with Amir Haleem, Founder and CEO of DePIN company Helium, to discuss how the company is building a decentralized mobile network spanning everything from airports to major cities, including a partnership with telecom powerhouse AT&T.
We cover Helium’s migration to Solana, its real-world use cases, and Amir’s perspective on regulation, market structure, and navigating SEC scrutiny during the Gensler years.
Amir also shares insights on working with multiple regulators, expanding Helium’s network globally, and why he’s optimistic about the intersection of telecom and blockchain.
Watch this episode on all platforms here.
Midweek Recap
Here are some of the biggest stories driving headlines this week:
Morgan Stanley filed with the SEC to launch its own Bitcoin, Ethereum and Solana ETFs.
MSCI decided not to exclude Bitcoin and crypto treasury companies from its indexes.
The Dow and S&P closed at record highs on Tuesday, above 49,000 and 6,944.82 respectively.
Streaming platform Rumble, in partnership with Tether and MoonPay, launched a crypto wallet that will enable creators to get paid by viewers.
Crypto.com completed its integration with Lynq, letting institutional clients fund accounts 24/7 and earn interest.
SUI treasury company SUI Group appointed former CFTC Commissioner and one-time Chair nominee Brian Quintenz to its board.
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