Senate accelerates crypto regulation: Tim Scott sets deadline for markup process

The race for the regulation of the crypto markets is becoming concrete. Tim Scott, Chairman of the Senate Banking Committee, makes it clear: either a broad consensus will be reached by January – or the committee will proceed with the markup process even without Democratic support. This is a clear signal that 2026 should not be expected to see further delays.

The Markup as the Crucial Point: What’s at Stake Now

The upcoming markup is the decisive window. In this phase, bills are clarified, amendments are made, and concrete regulatory frameworks are established. The CLARITY Act and related questions about market structure concern much more than just technical definitions – it’s about power and control.

Who defines what a spot is, what qualifies as a derivative, where the line between broker and custodian runs? And above all: when is a token regulated like a security? These questions may seem abstract but will later determine licenses, stock exchange listings, and whether institutional investors consider the market trustworthy at all. The markup process is thus nothing less than the architecture of the future crypto market.

Wasting Too Much Time: Scott Speeds Up

In early December, Scott already publicly warned of delays. His stance is pragmatic: if negotiations take too long, everything else must be planned differently anyway. Now he’s taking decisive action. If the discussion drags into early 2026, he will move forward without bipartisan support. This is not an empty threat – the committee chair has the tools for that. A markup can work with a narrow majority but will be harder to push through in the full chamber.

What This Means for the Industry

Tuesday’s Senate meeting is the last serious attempt to reach a compromise before the markup. Who is a spot, who is a derivative, who is regulated – such questions must be clarified before the markup machine gets fully underway.

The crypto industry’s clock is ticking. Either 2026 will start with a concrete regulatory roadmap – or it will be another open-ended ending. Scott’s pressure suggests: it’s becoming concrete. The markup process will begin soon, with or without an agreement.