WASHINGTON, D.C. (January 10, 2026) – The push to finalize the United States' first comprehensive crypto regulatory framework has reached a fever pitch this week. Following a flurry of activity in the opening days of the 119th Congress’s second session, Senate Banking Committee Chairman Tim Scott (R-SC) has confirmed that lawmakers are targeting later this month for a critical markup of the Digital Asset Market Structure bill. This legislation, deeply rooted in the bipartisan FIT21 Act passed by the House in 2024, represents the final legislative hurdle to resolving the jurisdictional tug-of-war between the SEC and CFTC.
Bipartisan Momentum Accelerates in the Senate
After the successful passage of the GENIUS Act (stablecoin regulation) in July 2025, Capitol Hill has turned its full attention to market structure. In his ‘2025 Year-in-Review’ report released just last week, Senator Scott highlighted the committee’s pivot toward “advancing comprehensive digital asset market structure legislation.” The goal is clear: send a bill to President Trump’s desk that fulfills his administration's promise to cement the U.S. as the “crypto capital of the planet.”
The intensifying bipartisan support for FIT21 Act implementation—now evolved into this broader Senate package—signals a decisive shift. While the original FIT21 bill stalled in the Senate last session, the current iteration has garnered renewed interest from moderate Democrats who view regulatory clarity as essential for consumer protection. “We are no longer debating ‘if’ we should regulate, but ‘how’ to implement the framework we’ve agreed upon in principle,” noted a senior aide to the Banking Committee.
SEC vs CFTC: Codifying the Peace Treaty
One of the most significant developments driving this legislative push is the cooling of hostilities between the nation's top financial watchdogs. For years, the SEC vs CFTC crypto jurisdiction battle created a fog of uncertainty for American innovators. However, the regulatory landscape shifted dramatically in late 2025 following the appointment of Paul Atkins as SEC Chair and Michael Selig as CFTC Chair.
The proposed legislation aims to codify the historic “Joint Statement” issued by the agencies in September 2025, which established a preliminary framework for cooperation. Under the new Digital Asset Market Structure bill, the CFTC would gain definitive oversight over “digital commodities”—assets that are sufficiently decentralized—while the SEC would retain authority over “restricted digital assets” that function as investment contracts. This statutory division is designed to prevent the “regulation by enforcement” era that characterized the previous administration.
Waters Calls for Oversight on Regulatory Shift
Despite the momentum, political friction remains. On December 29, Representative Maxine Waters (D-CA), Ranking Member of the House Financial Services Committee, sent a pointed letter to Chairman French Hill (R-AR). Waters requested an urgent oversight hearing to examine the SEC's recent pivots, specifically citing Chair Atkins' dismissal of certain legacy crypto enforcement actions. This developing crypto legislation news underscores that while the bill has momentum, the implementation phase will face intense scrutiny regarding investor protection standards.
Looking Ahead: US Crypto Regulation 2026
As the Senate Banking Committee prepares for the January markup, the industry is optimistic but cautious. The successful implementation of this bill would harmonize the U.S. approach with global standards, potentially unlocking billions in institutional capital. With the crypto policy US landscape rapidly evolving under the Trump administration's second term, the coming weeks will determine if 2026 is indeed the year the United States finally achieves regulatory clarity.
For now, all eyes are on the Senate floor. If the markup proceeds as planned, a full vote could occur before the spring recess, effectively ending the “Wild West” era of American cryptocurrency.
