The Senate Banking Committee has released a pivotal draft of its comprehensive market structure bill, establishing a decisive regulatory framework for digital assets just days before a scheduled committee markup on Thursday, Jan. 15.
Spearheaded by Committee Chair Tim Scott (R-S.C.), the updated legislation reflects months of bipartisan negotiation, most notably drawing a “sharp line” on stablecoin rewards. The bill explicitly prohibits crypto service providers from paying interest or yield to users solely for holding payment stablecoins in idle account a practice traditional banks have argued creates unfair competition and liquidity risks following the passage of the GENIUS Act in July 2025.
However, the draft incorporates a key compromise floated by Senator Angela Alsobrooks (D-Md.), permitting platforms to offer “activity-based” incentives. Under this provision, rewards are legal if tied to specific user actions such as transacting, staking, providing liquidity, or posting collateral, rather than passive holding.
Beyond stablecoins, the manager’s amendment integrates a significant bipartisan provision from Senators Cynthia Lummis (R-Wyo.) and Ron Wyden (D-Ore.). This addition seeks to shield software developers and network validators from being classified as “financial intermediaries” merely for writing code or maintaining blockchain infrastructure, addressing long-standing liability concerns in the open-source community.
The bill faces a tight legislative path. If it clears the Banking Committee on Thursday, it must be reconciled with the Senate Agriculture Committee’s version and the House-passed Digital Asset Market Clarity Act before a final Senate vote. Tensions remain high regarding ethics provisions related to President Donald Trump’s family crypto ventures, a sticking point that Democratic leadership warns could still derail the bill’s progress on the floor.