"Despite imminent U.S. Senate vote on virtual asset market-structure bill...bipartisan agreement uncertain"

Differences between Republicans and Democrats over a virtual asset market-structure bill moving through the U.S. Congress remain unresolved. Although votes in key Senate committees are imminent, disagreements over core elements of the bill make it unclear whether bipartisan agreement will be reached.

On the 8th (local time), CoinDesk reported that the Senate Banking Committee and the Agriculture Committee plan to hold markup votes on the virtual asset market-structure bill on the 15th. Senate Banking Committee Chairman Tim Scott said legislation can no longer be delayed and indicated that both committees could vote on the same day.

However, sources said many issues remained unresolved even after recent negotiations among senators. Lobbyists who saw the negotiation document said that many of the Democrats' core demands, which they have raised for months, remain unresolved.

One of the Democrats' strongest demands is an ethics provision. They argue the bill should include a clause to prevent senior officials, including the president, from gaining personal benefit through virtual asset businesses. Republican lead negotiator Senator Cynthia Lummis said she delivered a compromise to the White House but it was rejected. The Trump administration maintains that participation by the president's family in virtual asset businesses does not constitute a conflict of interest. Lobbyists say Republicans are unlikely to agree to provisions that directly target their party leadership.

Oversight of decentralized finance (DeFi) is also a sticking point. Democrats are calling for oversight on par with federally regulated financial institutions, but no agreement has been reached on basic definitions and scope of application. Some lobbyists warn that if this issue is handled poorly, the virtual asset industry could turn against the bill itself.

The question of whether stablecoins may offer yields is also controversial. The already passed GENIUS Act bans issuers from offering interest, but interpretations have emerged that allow yields or reward programs through affiliates. The banking sector argues this could threaten deposit-based business models, and some Democratic lawmakers share that concern. White House crypto adviser Patrick Witt said on social media that such opposition would "result in maintaining the status quo." Coinbase chief policy officer Faryar Shirzad said, "Congress has already settled this issue in the GENIUS Act," and re-opening it would increase uncertainty.

Questions also remain about the composition of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), which would have regulatory authority. Democrats say seats for Democratic-appointed commissioners should be filled on both agencies, while President Trump has maintained an effort to reduce Democratic appointees in regulatory agencies. Lobbyists questioned whether such matters are subject to legislative discussion, saying existing law already governs commission composition.

Other issues still under negotiation include legal classification criteria for virtual assets, which agency between the SEC and CFTC would have jurisdiction, and legal protections for software developers unrelated to illegal use. The Democratic leadership has not issued an official position, and given the time remaining, the likelihood that all issues will be resolved is considered low.

Cody Carbone, CEO of the virtual asset lobby group Digital Chamber, said he expects some Democratic senators to join Republicans in voting. In an interview with CoinDesk, he said, "There are remaining issues, but that is no reason to slow the legislative process."

However, lobbyists warned that forcing a markup without Democratic consent could hurt the ability to secure the 60 votes needed to pass the bill in the full Senate. Since Republicans alone cannot pass the bill out of the Senate's 100 seats, bipartisan support remains essential.