The U.S. Market Structure Bill is facing a probable delay until January 2026 as lawmakers continue to negotiate several unresolved provisions. Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) are leading discussions but have yet to reach consensus on key issues including stablecoin yield regulations, ethics restrictions, and decentralized finance oversight.
Stablecoin yield regulation remains a divisive issue among negotiators. While the recently enacted GENIUS Act prohibits stablecoin issuers from directly paying interest, a potential loophole allows exchanges and affiliates to offer interest-like rewards on dollar-pegged stablecoins. Democrats and banking groups are concerned these practices could drain deposits from traditional banks and create financial stability risks, while the crypto industry argues that yield features are essential for adoption and liquidity.
Ethics provisions have emerged as another contentious area. Democratic lawmakers are advocating for restrictions to prevent the President and family members from issuing or profiting from crypto projects, citing potential conflicts of interest related to public debate over private ventures. Republicans view these measures as punitive and potentially discouraging political participation in technology sectors.
The third major point of disagreement focuses on decentralized finance (DeFi) and developer liability. Lawmakers are struggling to define when activities such as writing open-source code or hosting interfaces should trigger intermediary obligations. This debate attempts to balance anti-money laundering and sanctions enforcement against concerns that overly broad rules could hamper innovation or push development offshore.
Market and compliance implications
The bill’s progression requires coordinated action in the Senate, with formal markups in both the Banking and Agriculture Committees representing crucial steps toward floor consideration. The combination of unresolved policy disputes and the approaching holiday recess has made these markups unlikely before year-end, effectively pushing progress into January 2026. Meanwhile, the House has already advanced its separate CLARITY Act, leaving the Senate to reconcile its draft with competing interests.
Bipartisan sponsors have maintained negotiations, but White House intervention has added last-minute pressure to the talks. Key objectives include clearly defining token classifications, determining which federal agencies hold oversight authority, and establishing appropriate consumer protections without unnecessarily restricting market access.
The potential delay into January extends regulatory uncertainty for market participants, affecting product planning, custody arrangements, and compliance strategies. Firms offering yield on stablecoins may need to develop contingency plans for product redesign or labeling, while custodians and exchanges should prepare for varying definitions of intermediary responsibility. Compliance teams will also need to monitor proposed ethics rules, which could impose new disclosure or divestiture requirements for officials and their associates.
