U.S. Crypto Regulation Faces Uncertain Future as Senate Debates Market Structure Bill

The U.S. crypto industry may soon receive long-awaited regulatory clarity, but the durability of those rules remains in question. Securities and Exchange Commission (SEC) Chairman Paul Atkins recently told the Senate Banking Committee that while the agency is prepared to establish clearer crypto regulations, lasting reform ultimately requires congressional action.

Atkins has criticized the SEC’s previous “head in the sand” approach to digital asset oversight and is advancing a new rulemaking effort under his “Project Crypto” initiative. These proposed rules aim to define how digital assets are classified and which federal agencies — including the SEC and the Commodity Futures Trading Commission (CFTC) — will oversee various segments of the cryptocurrency market. However, Atkins acknowledged that SEC-issued rules can be reversed by future administrations unless backed by comprehensive federal legislation.

The Senate’s Digital Asset Market Clarity Act, often referred to as the Clarity Act, is designed to create that statutory foundation. Yet negotiations have stalled. Lawmakers remain divided over stablecoin rewards programs, decentralized finance (DeFi) oversight, and anti-money laundering safeguards. Senator Mark Warner, a key Democratic negotiator, emphasized that any crypto market structure bill must prevent illicit finance risks and avoid regulatory loopholes for bad actors.

Although a similar bill passed the House of Representatives last year and another version recently cleared the Senate Agriculture Committee, the legislation still faces significant hurdles. Republicans will likely need bipartisan support in the full Senate, requiring at least seven Democratic votes to advance the bill.

Industry leaders, including Coinbase CEO Brian Armstrong, have signaled they may withdraw support if the final framework lacks balance. Meanwhile, Treasury Secretary Scott Bessent has urged the crypto sector to embrace meaningful regulation rather than resist oversight.

With the White House pushing for progress before month’s end, the future of U.S. cryptocurrency regulation hangs in the balance. Without congressional approval, any SEC crypto rules may offer only temporary certainty for digital asset markets.