US lawmakers are expected to address market structure legislation in January, with a focus on digital assets. The Senate Banking Committee is anticipated to move forward with consideration of a digital asset market structure bill in the second week of January, following months of delays. According to reports, the Banking Committee might hold a markup for the Responsible Financial Innovation Act during this period. This marks progress on legislation slowed by Democratic lawmakers' concerns over decentralized finance and the longest US government shutdown in history.

Cody Carbone, CEO of the digital asset advocacy organization The Digital Chamber, stated that the Senate is expected to hold at least one markup on pending market structure legislation in January. Concurrently, the U.S. Senate Agriculture Committee is reviewing its version of the market structure bill before any potential floor vote in the chamber. The Digital Asset Market Clarity Act (CLARITY), which passed the House in July, aims to give the Commodity Futures Trading Commission (CFTC) more authority in regulating digital assets. Early drafts of the Senate bill signaled more collaboration between the CFTC and Securities and Exchange Commission (SEC) over cryptocurrency regulation.

The Senate Committee on Banking Chair Tim Scott and Senate Agriculture, Nutrition and Forestry Committee Chair John Boozman have agreed on the timeline. Lawmakers are expected to focus amendments on asset classification tests, investor protection standards and how quickly platforms must register under the new regime. Another key issue will be how the SEC and CFTC coordinate oversight during the transition period.

The future of the legislation in the Senate is uncertain, as it is unclear whether it will garner sufficient support for passage if presented for a floor vote. Republican Senator Thom Tillis stated in October that the start of campaigning for the 2026 midterm elections could potentially impede progress on crypto-related bills, including market structure legislation. In addition to political challenges, Wyoming Senator Cynthia Lummis, a prominent advocate for the market structure bill, announced on December 19 that she would not seek reelection in 2026.

Negotiations between Democratic and Republican senators over which agencies will play which role in regulating the cryptocurrency market will continue in the new year. One of the major issues at play in market structure legislation is what bank lobbyists are calling a loophole in the stablecoin GENIUS law.

With the Senate returning on January 3rd, the January markup is worth watching, because if this gets real clarity into law, it changes how serious capital thinks about the space.