After months of silence, the fight over how crypto will be regulated in the United States is heating up again on Capitol Hill. The long-delayed market structure bill, known as the Clarity Act, is back on the agenda. If passed, it would provide the first real legal framework for the digital asset industry in U.S. history.

This Thursday, the Senate Agriculture and Banking Committees will hold crucial hearings to finalize and merge their sections of the bill. If successful, the consolidated version will move to the Senate floor — possibly before the high-stakes midterm elections in fall 2026.

The Clarity Act Aims to Finally Define Who Regulates What

The bill’s goal is ambitious: to create a clear and predictable environment for crypto companies, which until now have operated in a legal no-man’s-land between the SEC and the CFTC.

The bill would define:

🔹 How both agencies share oversight

🔹 Who is required to register

🔹 What types of tokens exist

🔹 What obligations apply to exchanges and brokers

With that, firms would finally know if they fall under securities laws, commodities laws — or both — and what that actually means for their operations.

The Three Flashpoints: Stablecoins, DeFi, and Trump’s Crypto Profits

Three issues are expected to dominate debate this week:

🔹 Rewards paid on stablecoins

🔹 Accountability for DeFi developers

🔹 A proposed ban on public officials profiting from crypto — specifically targeting President Trump

According to Cody Carbone from the Digital Chamber, the stablecoin issue is “the biggest unresolved problem” on the Hill. But both Republicans and Democrats have now agreed that stablecoin interest, yields, and rewards will be addressed in the bill.

Earlier this year, the Community Bankers Council warned that some stablecoin issuers are skirting last year’s GENIUS Act, which banned yield-bearing dollar-backed tokens. These schemes are now undercutting traditional savings accounts, according to critics.

DeFi Developers Fear Being Criminalized for Other People’s Crimes

DeFi is another political minefield. Developers are worried they’ll be punished if someone uses their open-source code for illicit activities like money laundering.

Attorney Amanda Tuminelli of the DeFi Education Fund says lawmakers must target people, not code. She wants to ensure that developers who don’t hold or control customer funds are not held legally responsible.

DeFi supporters are also pushing for language that affirms the right to self-custody crypto without relying on intermediaries. This language originates from the Blockchain Regulatory Certainty Act.

Trump’s Memecoins Stir Controversy Among Democrats

Some Democrats, led by Senator Elizabeth Warren, want the final version of the bill to ban elected officials from profiting off crypto while in office.

The push is widely seen as a response to Donald Trump, whose inner circle is linked to TRUMP memecoins, NFT collections, and other crypto ventures.

While the House removed this clause earlier this year, Summer Mersinger of the Blockchain Association says the Senate won’t let it go:

“The Senate is not going to punt on this issue.”

The Clock Is Ticking: Senate Wants to Vote Before the Midterms

On Thursday, both committees are expected to release their final draft sections. If approved, the documents will be merged into a single comprehensive bill — then sent to the Senate for a full vote.

But the legislative process may take weeks, and time is running out. With the midterms looming, failure to pass the bill before November could kill the effort entirely.

“Congress has a lot of other priorities on the table,” says Mersinger. “But right now, this is the critical window they see to get something out of committee and onto the floor.”

America Is Deciding the Future of Crypto — and the World Is Watching

This crypto market structure bill could fundamentally reshape the rules of the game in the U.S. While companies are begging for regulatory clarity, lawmakers remain divided — over stablecoins, DeFi liability, and who gets to profit from the system.

If the bill isn’t passed in the next few months, the U.S. crypto industry may remain trapped in legal uncertainty.

#CryptoRegulation , #Stablecoins , #bitcoin , #TRUMP , #CryptoNews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“