Senators engaged in bipartisan discussions regarding the anticipated crypto market structure bill met on Tuesday amid ongoing disagreements about the timing of a committee vote on the legislation. 

According to a report from Politico, Sen. Cynthia Lummis, a key negotiator for the Republican side, expressed optimism that a new draft of the bill could be released this week. 

Lummis aims to have the bill ready for markup before Congress adjourns for the holiday break, stating, “Knock on wood, I hope to share a draft at the end of this week that reflects our best efforts to date.”

Lummis Urges Swift Progress On Crypto Legislation

During a panel discussion hosted by the Blockchain Association, Sen. Lummis emphasized the urgency of progressing with the legislation. She remarked that it might be advantageous for lawmakers to finalize a product and proceed with the markup next week, allowing everyone to take a break for the Christmas holidays. 

In related developments, Politico reported that Senate Banking Republicans submitted a proposal to their Democratic counterparts last week, suggesting over 30 amendments to a previous draft of the legislation. 

The three-page document, which comes from GOP senators on the Banking Committee, seeks to maintain certain elements of the original bill while incorporating adjustments acceptable to Democratic lawmakers.

Senate Banking Committee Chair Tim Scott and other Republicans are eager to finalize the markup next week, although some Democrats have expressed skepticism about this ambitious timeline. Following a meeting on Monday, Democrats sent a response to the GOP offer, but details of their feedback remain unclear.

Concessions In GOP’s Proposal 

The GOP’s proposal outlines the aspects from a September crypto market structure framework that they agree to integrate into a bipartisan bill, hoping to reconcile differences with their Democratic colleagues. 

The proposal includes a two-column table delineating 38 concessions the Republicans are willing to make, in exchange for retaining or modifying 32 sections of the original Responsible Financial Innovation Act discussion draft.

Among the concessions is language that reflects White House approval, which could address Democratic concerns regarding appointments to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). 

Additionally, the proposal contains ethics provisions aimed at addressing scrutiny over the Trump family’s business connections in the crypto sector. 

However, Lummis noted a previous ethics proposal she negotiated with Sen. Ruben Gallego was rejected by the White House, and she plans to collaborate further with Democrats to revisit the issue.

Other notable concessions from the Republicans include a section on consumer protection standards for digital assets, proposed language regarding bankruptcy, the establishment of a federal baseline for crypto ATMs, and risk management standards for digital asset intermediaries. 

Featured image from DALL-E, chart from TradingView.com 

In the wake of the GENIUS Act, which was signed into law by President Donald Trump in July, attention is now turning to the CLARITY Act, commonly known as the crypto market structure bill. This legislation has encountered substantial delays, exacerbated by the recent government shutdown and a lack of consensus in Congress.

Bank Leaders To Engage With Congress On Key Crypto Topics

This week, the CEOs of Citigroup, Wells Fargo, and Bank of America are scheduled to meet with both Republican and Democratic senators to discuss the evolving legislation surrounding crypto market structure. 

The meetings are set for Thursday, and congressional staff have indicated that the CEOs would welcome the chance to share insights on US Global Systemically Important Bank (GSIB) market structure priorities.

The bank leaders are anticipated to hold separate discussions with lawmakers from both parties, emphasizing collaboration to shape effective policies that position the United States as a leader in crypto assets. Among the topics on the agenda are bank permissibility, interest payments, and concerns surrounding illicit finance. 

Senate Faces Hurdles

Recent updates on social media platform X (previously Twitter) from Eleanor Terret of Crypto In America, also indicate that obtaining a markup for the crypto market structure bill before the Christmas break poses challenges. 

Senator Mark Warner has expressed concerns about pending language from the White House regarding two critical components of the bill—ethics and quorum. 

Warner noted the importance of addressing these issues thoughtfully, stating that bipartisan discussions are ongoing, yet productive progress is essential.

The Senate’s approach to the legislation is further complicated by its division into two committees: the Banking Committee, which oversees securities laws, and the Agriculture Committee, which focuses on commodities law. 

Both committees have released drafts of their work during the fall, with markup sessions—the process for voting on amendments before a full Senate vote—upcoming. However, both committees are proceeding cautiously due to unresolved issues.

Senators Demand Conflict Of Interest Provisions

The most pressing concerns include the treatment of stablecoin yields, potential conflicts of interest, and the regulatory approach to decentralized finance (DeFi). 

Some Democratic senators have indicated that they will not support the legislation unless it includes provisions addressing any possible conflicts relating to the President’s family and their business involvements in the crypto realm. 

Moreover, while market structure legislation primarily targets centralized platforms managing user funds, there is a push from the traditional finance sector to classify virtually all crypto-related entities, including developers and validators, as intermediaries.

Market analyst MartyParty provided an encouraging update on December 4, noting that the bipartisan crypto market structure bill is gaining momentum in Congress. 

A markup session with the Senate Banking Committee has been tentatively scheduled for December 17-18, just prior to the holiday recess.

Featured image from DALL-E, chart from TradingView.com 

As stablecoins continue to gain worldwide momentum, the International Monetary Fund (IMF) has called for global cooperation to avert potential macro financial stability risks related to the rapidly growing sector and to turn the industry “into a force for good.”

Stablecoins To Foster Innovation, Financial Inclusion

On Thursday, the IMF released a 56-page report discussing the growing influence of stablecoins, their potential use cases in mainstream financial markets, and the risks associated with the sector’s varying oversight.

Amid the sector’s rapid growth, the organization highlighted that the two largest stablecoins, USDT and USDC, have tripled their market capitalization since 2023, reaching a combined $260 billion. Meanwhile, their trading volume has increased by around 90% to $23 trillion in 2024, with Asia surpassing North America in stablecoin activity volume.

The IMF noted two major potential benefits from stablecoins. First, they could enable faster and cheaper cross-border payments, especially for remittances, which can cost 20% of the amount being sent and face some delays.

However, “being a single source of information, blockchains can greatly simplify the processes linked with cross-border payments and reduce costs,” the Fund’s economists explained in a blog post.

Second, stablecoins could expand financial access, driving innovation by increasing competition with established payment service providers, therefore, making retail digital payments more accessible to underserved customers.

They could facilitate digital payments in areas where it is costly or not profitable for banks to serve customers. Many developing countries are already leapfrogging traditional banking with the expansion of mobile phones and different forms of digital and tokenized money.

Notably, competition with already established providers could lower costs and lead to enhanced product diversity, “leveraging synergies between digital payments and other digital services.”

IMF Warns Of Fragmented Oversight

Despite their potential benefits, stablecoins also carry significant risks, the IMF explained, including de-pegging and collapsing if the underlying assets lose value or if users lose confidence in the ability to cash out. Per the report, this could also trigger fire sales of the reserve assets and disrupt financial markets.

Stablecoins could also accelerate a “currency substitution” dynamic, where individuals and companies abandon their national currency in favor of a foreign one, like US dollars or euros, due to instability or high inflation.

The organization noted that the dynamic decreases a country’s central bank’s ability to control its monetary policy and serve as the lender of last resort, damaging the financial sovereignty of affected nations.

In addition, the potential to reduce cross-border frictions and make faster and cheaper transactions could be undermined by a lack of interoperability if various networks are unable to connect or are restricted by different regulations and other hurdles.

“Stablecoin regulation is in its infancy, so the ability to mitigate these risks remains uneven across countries,” the organization affirmed, noting that “the IMF and the Financial Stability Board have issued recommendations to safeguard against currency substitution, maintain capital flow controls, address fiscal risks, ensure clear legal treatment and robust regulation, implement financial integrity standards, and strengthen global cooperation.”

As reported by Bitcoinist, the FSB vowed in October to address the evolving threats from private finance and the growing use of stablecoins, promising to increase the global watchdog’s policy response and overhaul its surveillance system to make it more flexible and quicker.

Nonetheless, major jurisdictions have taken different stances in key areas, as the IMF detailed, which could result in the exploitation of gaps between jurisdictions and issuers to locate where oversight is weaker.

All this underscores the need for strong international cooperation to mitigate macrofinancial and spillover risks (…). Tokenization and stablecoins are here to stay. But their future adoption and the outlook for this technology are still mostly unknown.

The organization concluded that “improving the existing global financial infrastructure might be easier than replacing it. Achieving the best possible balance will require close cooperation among policymakers, regulators, and the private sector.”

The United Kingdom (UK) has reached a significant milestone in its approach to digital assets with the recent passage of the Property Act 2025, which now officially categorizes cryptocurrencies as legal property. 

UK’s New Law Sets Criteria For Digital Assets

The creation of this dedicated legal category for digital assets followed recommendations from the Law Commission, which advocated for a framework that acknowledges assets not fitting traditional definitions of personal property.

This legal evolution is seen as part of a broader strategy to position the UK as a leading digital finance hub, responding to experts’ calls for the country to align its regulatory environment with that of the United States in order to promote growth in the digital asset market. 

According to law firm Clyde & Co, a key provision in the law states that “a thing (including a thing that is digital or electronic in nature) is not prevented from being the object of personal property rights merely because it is neither (a) a thing in possession, nor (b) a thing in action.” 

This phrase confirms that digital assets can now be recognized as a third category of personal property, distinct from the traditional classifications of tangible and intangible assets.

However, the Act does not guarantee that any specific type of asset qualifies as personal property; rather, it aims to “unlock” the common law’s ability to adapt to technological advancements and new asset types, as outlined in the Explanatory Notes from Parliament. 

The interpretation of existing digital assets—such as cryptocurrencies and non-fungible tokens (NFTs)—as well as any emerging forms will ultimately depend on future court rulings. 

The law firm also noted that, under this new law, a digital asset must meet certain criteria to qualify as personal property: it must be definable and identifiable by third parties and capable of being assumed by them, as well as possess a degree of permanence.

Additionally, digital assets will be included in bankruptcy and insolvency proceedings, allowing them to be treated as part of the overall asset pool available to creditors and heirs. 

Government Moves To Ban Crypto Donations

While momentum continues for digital asset recognition, the UK government is also addressing concerns surrounding cryptocurrency in the political sphere. 

Ministers are reportedly working on legislation aimed at banning political donations made through digital currencies, although this crackdown may not be ready in time for the upcoming elections bill in the new year. 

Officials have raised alarms that cryptocurrency donations pose risks to the integrity of the electoral process, primarily due to their difficult-to-trace nature, which could open the door to exploitation by foreign entities or criminal organizations.

At the time of writing, the market’s leading cryptocurrency, Bitcoin, was trading at $92,180, surging 4% in the past 24 hours. 

Featured image from Shutterstock, chart from TradingView.com 

The President of Poland has vetoed a controversial bill that aimed to set strict rules on the crypto assets market, following multiple concerns of a startup exodus, “overregulation” of the sector, and stifling market innovation.

Poland’s President Vetoes Divisive Crypto Bill

On Monday, Poland’s President Karol Nawrocki refused to sign a crypto market legislation over concerns that it could pose a real threat to the freedoms of Poles, the stability of the state, and market innovation.

In an official statement, the president’s office announced Nawrocki’s decision to veto the Crypto-Asset Market Act, introduced in June, to prevent “overregulation” and abuse of the “legal mess” proposed by the Polish government.

As reported by Bitcoinist, Poland’s crypto community previously raised concerns about the legislation in September, noting that the bill exceeded the European Union (EU)’s minimum regulatory requirements and could drive small businesses and startups abroad.

Notably, the bill’s text required all Crypto Asset Service Providers to obtain a license from the Polish Financial Supervision Authority (KNF) to operate in the market. It also proposed heavy fines and potential prison time for participants who breached the law.

Rafal Leśkiewicz, Press Secretary of the President, listed on X three main reasons for Nawrocki’s decision to reject the bill. He asserted that the legislation risks power abuse and overreach, as some provisions allow the government to shut down websites of companies offering crypto services “with a single click.”

“This is unacceptable. Most European Union countries use a simple list of warnings that protects consumers without blocking entire websites,” he noted.

In addition, the regulation’s size and lack of transparency risked overregulation, noting that countries like the Czech Republic, Slovakia, and Hungary implemented concise and comprehensive frameworks. Meanwhile, Poland’s text surpasses the one-hundred-page mark.

He argued that “Overregulation is a straight path to driving companies abroad—to the Czech Republic, Lithuania, or Malta—instead of creating conditions for them to earn money and pay taxes in Poland.”

Lastly, the Press Secretary listed the amount of supervisory fees as an issue, affirming that the government set them at a level that would have prevented small businesses and startups from developing, favoring foreign corporations and banks. To him, “this is a reversal of logic, killing the competitive market and posing a serious threat to innovation.”

Community Praises The ‘Necessary Decision’

Leśkiewicz emphasized that regulation is necessary, but added that it must oversee the market in a way that’s “reasonable, proportionate, and safe” for users, rather than overreaching and potentially harming the Polish economy.

“The government had two years to prepare a bill in line with the European MiCA regulation on the crypto-asset market in the European Union. Instead, it produced a legal mess that hurts Poles and Polish companies,” he asserted. “The decision to veto was necessary and was made responsibly. The president will defend the economic security of Poles.”

Polish economist Krzysztof Piech praised the president’s decision to veto the crypto bill, affirming that it was “a very bad law” that “violated the Polish Constitution and was contrary to the EU regulation it was supposed to implement in Poland.”

Piech also refuted claims that Poland will become a “paradise” for criminals and fraudsters, who will “be grateful” to President Nawrocki for “a crypto market without state supervision.”

The economist asserted that the government’s version of the bill “did not provide for any assistance to victims of fraudsters,” adding that, “as of July 1, 2026, the entire Polish market will be regulated and supervised — even without any legislation. After all, we are in the EU.”