US Senate Weighs Mid-May Markup for Crypto Market Structure Bill as Trump Conflict Concerns Grow

Source

YM Lee

Summary

The US Senate has entered a final round of coordination on a crypto market structure bill as it considers a committee markup in mid-May.
The bill's key issues include stablecoin compensation structures, DeFi regulation, ethics provisions, and the division of jurisdiction between the CFTC and SEC, with passage odds put at 15%% to 25%% and by some at 50%%.
Conflict-of-interest concerns tied to the Trump family — including revenue from DeFi and stablecoin projects, a 20%% stake in a mining company, and a TRUMP memecoin event — are emerging as a political variable for the bill.

Forecast Trend Report by Period

The US Congress is moving to advance a cryptocurrency market structure bill in May.

The Senate is considering a committee markup as early as mid-May for legislation that would establish a regulatory framework for the crypto industry, The Block reported on April 30.

Senator Thom Tillis, a key negotiator on the bill, said he asked Senate Banking Committee Chairman Tim Scott to move ahead with the review schedule. Momentum is building toward a vote, and negotiations have entered a final round of coordination ahead of a possible floor push.

The legislation still faces disagreements on several major issues. The main sticking points include stablecoin compensation structures, regulation of decentralized finance, and ethics provisions.

Tillis has said he would oppose the bill if it does not include ethics rules. Democrats have also insisted that concerns over illicit finance and conflicts of interest must be addressed first for any bipartisan deal.

The Senate Banking Committee is working through the broader regulatory framework, including how oversight would be divided between the Commodity Futures Trading Commission and the Securities and Exchange Commission. The House passed a similar measure, the Clarity Act, last year.

Political complications are also mounting. Debate over the bill is being shaped by scrutiny of President Donald Trump and his family's ties to crypto businesses.

Bloomberg recently estimated that Trump made at least $1.4 billion from DeFi and stablecoin projects, among other ventures. The Trump family also holds a 20% stake in a mining company and recently hosted an event for holders of the TRUMP memecoin, fueling further controversy.

Democrats are expected to highlight those conflict-of-interest concerns ahead of the midterm elections. In a related vote in the Senate Agriculture Committee, all Democratic senators voted against the bill and pointed to Trump's ties as a main reason.

The bill's prospects remain uncertain. One industry official put the odds of passage at 15% to 25%, while Galaxy estimated the chance of enactment this year at about 50%.

The measure would need 60 votes to pass the Senate, making support from all Republicans and at least some Democrats essential. But obstacles remain, with some Republicans withholding support because of separate legislative disputes.

Provisions aimed at preventing conflicts of interest, including a ban on federal officials issuing cryptocurrencies, have also emerged as a central issue.