Legislation designed to establish a comprehensive market structure for digital assets is moving into a crit…

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Legislation designed to establish a comprehensive market structure for digital assets is moving into a critical phase within the United States Senate. A formal markup event is officially scheduled for next week, representing a major step toward bringing the bill to the floor. Cody Carbone, who serves as the CEO of the crypto advocacy organization known as The Digital Chamber, has indicated that it is highly possible the Senate Agriculture Committee will hold a markup session for its version of the Responsible Financial Innovation Act (RFIA) concurrently with other legislative bodies. This movement is bolstered by a confirmation from Senator Tim Scott, the chair of the Senate Banking Committee, who stated that the committee is prepared to hold a vote on the market structure legislation on January 15.

The Digital Chamber has reported being intimately involved in the drafting process, having been invited by lawmakers to provide specific feedback on various versions of the proposed bills. To capitalize on this legislative window, the organization plans to bring more than 50 of its member companies to Washington this Thursday. This group of industry representatives will engage with Senate offices to provide education on the necessity of the bill and address technical questions from legislators. The scheduled markup next week and the subsequent vote in mid-January represent the most significant progress for crypto-related legislation in the current session, aiming to provide much-needed clarity for the digital asset ecosystem.

Context

The current regulatory landscape for digital assets in the United States has been largely defined by the actions of the Securities and Exchange Commission (SEC). To date, the SEC has taken a leading role in providing regulation and enforcement oversight for many companies operating within the cryptocurrency space. However, the Responsible Financial Innovation Act (RFIA) seeks to redefine this oversight by distributing authority more clearly among federal agencies. Early drafts of the legislation indicate that lawmakers intend to grant the US Commodity Futures Trading Commission (CFTC) significantly more authority in the regulation of digital assets, a shift that many in the industry have long advocated for to distinguish between securities and commodities.

The Digital Chamber has played a central role in these discussions, acting as a bridge between the private sector and legislative offices. CEO Cody Carbone noted that the organization has been intentional about including a diverse array of participants from the digital asset ecosystem in its advocacy efforts. These participants include representatives from major exchanges, token issuers, traditional banks, Bitcoin mining operations, infrastructure providers, and decentralized finance (DeFi) protocols. By bringing more than 50 of these member companies to the capital this Thursday, the advocacy group aims to ensure that lawmakers understand the practical implications of the bill. This direct engagement is intended to provide feedback on the various versions of the legislation that have been drafted as the Senate Agriculture and Banking committees prepare for their respective markups and votes.

Impact

Despite the current momentum in the Senate, external analysis suggests that the path to final passage and implementation may be longer than industry advocates hope. The investment bank TD Cowen has reportedly issued a notice to investors warning that the Responsible Financial Innovation Act is more likely to pass through Congress in 2027. This forecast significantly extends the timeline for a settled regulatory environment, with the bank speculating that the final implementation of the RFIA’s provisions could be delayed until as late as 2029. Such a timeline would mean that the digital asset industry might operate under the existing regulatory framework for several more years before the new rules take full effect.

A primary driver for these potential delays is the shifting political environment associated with the 2026 midterm elections. TD Cowen’s analysis suggests that as the elections approach, some Senate Democrats may choose to withdraw their support for the bill to avoid political risks during their campaigns. Furthermore, there is the possibility that Republicans could lose their majority control of the Senate in November 2026. Such a change in leadership would likely reset the legislative priorities of the Banking and Agriculture committees, potentially undoing the progress made during the current session. These political uncertainties create a high-stakes environment for the bill, as any failure to secure a vote in the near term could result in the legislation being stalled by the broader dynamics of a national election cycle.

Outlook

The immediate outlook for digital asset legislation depends on a narrow window of opportunity before the 2026 election cycle begins in earnest. Republican Senator Thom Tillis, a member of the Senate Banking Committee, has explicitly stated that lawmakers should aim to act on the legislation by the first part of January or February. This timeline is intended to avoid the inevitable conflicts that arise once lawmakers begin focused campaigning for the 2026 midterms. The scheduled vote on January 15 by the Senate Banking Committee aligns with this proposed schedule, but significant obstacles remain. Chief among these is the ongoing uncertainty regarding government funding. While Congress recently reached a stopgap agreement to fund the government until January 31, the threat of a future shutdown persists.

Previous failures to reach a funding agreement led to significant delays in Senate progress on the market structure bill, and another shutdown could once again stall the momentum built by the committees. Nevertheless, industry leaders like Cody Carbone remain optimistic, citing the progress achieved between Republicans and Democrats through the holiday season and into the new year. The Digital Chamber’s efforts to bring 50 member companies to Washington this Thursday are designed to maintain this momentum and ensure that the legislative process remains on track. The coming weeks will determine if the Senate can navigate the dual challenges of a looming funding deadline and the approaching 2026 elections to pass what is expected to be one of the most significant pieces of blockchain legislation to date.