Tim Scott Signals Potential Breakthrough for Stalled US Crypto Market Structure Bill

• Senator Tim Scott anticipates receiving a first draft proposal on stablecoin yield language this week.
• The Senate’s crypto market structure bill has gained momentum after stalling since January over yield payments and other provisions.
• Negotiations also address DeFi rules, ethics, AML regulations, and quorum issues.
• Progress follows the House passage of the CLARITY Act and Senate Agriculture Committee markup sent to the floor in January.

U.S. Senator Tim Scott, chair of the Senate Banking Committee, indicated that lawmakers could see a new draft addressing the most contentious element of the stalled crypto market structure bill as soon as this week.

In remarks at the Digital Chamber’s DC Blockchain Summit, Scott expressed confidence in ongoing bipartisan negotiations. The stablecoin yield provision — which would ban issuers and third parties such as exchanges from offering yield payments — has been the primary sticking point, with banking groups warning of potential deposit flight and crypto advocates arguing it limits competition.

“I believe that this week we will have the first proposal in my hands to take a look at,” Scott said, according to CoinDesk reporting. He added that if the draft materializes, “we’re going to be in much better shape,” crediting efforts by Senators Angela Alsobrooks and Thom Tillis, as well as White House official Patrick Witt.

The Senate version of the legislation, which outlines regulatory roles for the SEC and CFTC, has been delayed since a January markup postponement. Other issues under discussion include decentralized finance (DeFi) rules, anti-money laundering (AML) provisions, ethics concerns, and quorum requirements, as noted in Cointelegraph.

Scott described recent progress as building daily momentum: “We have made a lot of progress over the last probably 30 days or so […] every single day it feels like the big momentum is finally on our side.” The Senate Agriculture Committee advanced its portion of the bill to the floor in January, while the Banking Committee oversees SEC-related elements.

While the potential proposal could clarify rules for stablecoins and broader crypto activities, industry participants continue to monitor developments closely. Banking interests have lobbied against perceived loopholes, whereas crypto stakeholders emphasize the need for innovation-friendly frameworks.

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