Republican lawmakers are pushing for swift action on digital asset market structure legislation, citing concerns over alleged "debanking" practices targeting cryptocurrency companies and individuals. Members of the House Financial Services Committee and the House Oversight Subcommittee recently released a report accusing the previous administration of unfairly restricting access to financial services for some crypto firms.
According to the Republican lawmakers, regulators under former President Biden employed "vague rules, excessive discretion, informal guidance, and aggressive enforcement actions to pressure banks away from serving digital asset clients". They have labeled these actions "Operation Choke Point 2.0". This echoes concerns that government entities are using their regulatory power to stifle законным but disfavored businesses by pressuring financial institutions to cut off their services.
To address these concerns, Republicans are urging the Senate to consider the Digital Asset Market Structure bill, also known as the CLARITY Act, which already passed the House of Representatives in July. They believe this legislation, along with other targeted bills, will provide much-needed clarity for the cryptocurrency industry. House Financial Services Chair French Hill and Oversight Subcommittee Chair Dan Meuser stated that the CLARITY Act would prevent a future "Operation Choke Point 3.0" by establishing clear rules for digital asset companies to operate lawfully in the U.S. and ensuring banks can engage with the digital asset ecosystem.
The proposed market structure bill is currently under consideration in the Republican-led Senate Agriculture Committee and the Senate Banking Committee. Senate Banking Committee Chair Tim Scott indicated in November that he aims to have a bill ready for enactment by early 2026. On September 5, Senate Banking Committee Republicans released an updated discussion draft of the “Responsible Financial Innovation Act of 2025”. Senator Cynthia Lummis voiced optimism in September, hoping to see the bill on the President's desk before the end of the year.
However, the path forward may not be seamless. Senate Democrats are reportedly preparing for a potential markup session of a bipartisan bill, possibly in December. Disagreements persist, particularly regarding decentralized finance (DeFi) protocols and liabilities for developers if their tools are misused. The Senate Agriculture Committee released a bipartisan draft, but significant portions remain unresolved.
The Office of the Comptroller of the Currency (OCC) issued bulletins in September addressing debanking practices and customer financial records, following directives from President Trump’s Executive Order 14331 “Guaranteeing Fair Banking For All Americans”.
The crypto industry is closely watching these legislative efforts. Crypto-focused political action committees (PACs) have amassed a significant war chest for upcoming elections, intending to support pro-crypto candidates. The 2024 election cycle saw these PACs spend heavily to influence election outcomes. With the potential for the Senate to amend the bill, the final version may need to return to the House for another vote, extending the legislative process.
