GOP Crypto Bill Faces Setback as Senator Warns “We’re Not Ready”

Senate Republicans are facing fresh internal divisions over digital asset legislation, with a senior member of the Banking Committee signaling that efforts to advance a landmark cryptocurrency market structure bill could stall this ￰3￱ Kennedy (R-La.) said on Wednesday that he does not believe the committee is prepared to move forward, casting doubt over Chairman Tim Scott’s pledge to mark up the bill before the end of September. “I don’t think we’re ready,” Kennedy told reporters. “People that I talk to still have a lot of questions. I know I still have a lot of questions.” His comments represent the clearest sign yet of resistance inside GOP ￰4￱ previously expressed concern that the bill, which would divide oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), could give the crypto industry too much sway over the legislative ￰5￱ warning sets him at odds with Scott and other Republicans who have made completing a market structure bill a top ￰6￱ Pushback Threatens Scott’s September Deadline for Digital Asset Legislation A spokesperson for Scott emphasized that Banking Committee Republicans believe advancing a bipartisan framework is “long overdue.” Jeff Naft, speaking on behalf of Scott, said lawmakers have been working since June toward a September markup, citing thousands of pages of feedback and consultations with roughly 160 stakeholders.

“The House has already acted, and the Senate should not fall behind,” Naft ￰7￱ House passed its own version of the legislation, known as the CLARITY Act, in July. Meanwhile, Senate Republicans introduced the GENIUS Act earlier this summer, creating new rules for stablecoins pegged to the ￰8￱ Kennedy dismissed that earlier measure as only a “baby step” compared to the broader market structure overhaul now on the table. “This is a full leap,” he said. “And we’ve got to get it right.” The split within GOP ranks threatens to derail Scott’s self-imposed September 30 ￰9￱ South Carolina senator, who serves as ranking member of the Senate Banking Committee, has spent months positioning his caucus to move forward. ￰0￱ — ￰10￱ (@cryptonews) June 27, 2025 In June, Scott and colleagues, including Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.

C.), and Bill Hagerty (R-Tenn.), released a set of principles outlining how they want digital assets ￰11￱ framework called for clear distinctions between securities and commodities , a shared oversight model between the SEC and CFTC, and anti-money laundering provisions designed to be “pro-innovation.” The principles also encouraged regulators to employ tools such as safe harbors and no-action letters to engage with crypto projects. Lummis, who chairs the Banking Committee’s digital assets subcommittee, warned at the time that the ￰12￱ falling behind global peers such as the European Union and Singapore if it did not act ￰13￱ doubled down on the urgency later that month, setting a firm September 30 deadline for completing market structure ￰14￱ at a Capitol Hill event alongside Lummis and White House adviser Bo Hines, Scott said finalizing the bill by that date was “a realistic expectation.” Hines echoed the commitment in a June 26 social media post, stating, “We are committed to getting market structure done by the end of September.

Period.” Crypto industry leaders rallied behind the ￰15￱ CEO Brian Armstrong called it “a clear path forward,” while Andreessen Horowitz government affairs head Colin McCune said comprehensive rules have been “sorely needed for years.” The industry has spent hundreds of millions of dollars on lobbying in Washington in hopes of securing long-awaited regulatory clarity. Still, skepticism is not confined to ￰16￱ Kim (D-N. J.), a Democrat on the Banking panel, said there is “still a lot more work to be done” and warned that marking up the bill this month would be “a mistake.” Democrats who have shown openness to the legislation have likewise urged Republicans to slow the ￰17￱ legislation under debate would represent the most sweeping attempt yet to regulate the $2 trillion digital asset market, setting new rules of the road for trading platforms and asset ￰18￱ fate could determine how quickly the United States catches up to other jurisdictions with established ￰19￱ for CLARITY Act Fades as Democrats Push Rival Crypto Bill Momentum behind the Republican-led CLARITY Act is showing signs of strain despite earlier optimism that bipartisan support could carry it through Congress this ￰20￱ Tim Scott predicted that 12 out of 18 Democrats may back the CLARITY Act in an appearance on Tuesday. #TimScott #CLARITYAct ￰1￱ — ￰21￱ (@cryptonews) August 20, 2025 At the SALT Wyoming Blockchain Symposium in August , Senate Banking Committee Chairman Tim Scott predicted that 12 of 18 Senate Democrats might ultimately back the ￰22￱ argued that growing bipartisan interest in setting rules for digital assets could offset resistance from figures such as Senator Elizabeth Warren, who has been outspoken against loosening ￰23￱ Cynthia Lummis, a co-sponsor of the draft framework, went further, setting a Thanksgiving deadline for passage and promising the measure would reach the president’s desk before ￰24￱ said the proposal would clarify how securities and commodities laws apply to digital assets, modernize regulatory frameworks, and provide stronger consumer ￰25￱ Cynthia Lummis is looking to have digital asset market structure legislation completed before the end of 2025. #CynthiaLummis #cryptolegislation ￰2￱ — ￰26￱ (@cryptonews) August 21, 2025 Yet resistance within the Democratic Party has hardened in recent ￰27￱ September 9, a group of 12 Democratic senators unveiled their own crypto regulation framework , the first coordinated stance by the party this ￰28￱ proposal emphasized tighter disclosure standards, mandatory registration of crypto platforms with the Financial Crimes Enforcement Network, and strengthened oversight by both the SEC and CFTC.

Notably, it also included provisions designed to limit political conflicts of interest by blocking elected officials and their families from profiting from digital assets.