The crypto market structure bill appears to have hit a snag, as Senate Democrats have come forward with a counteroffer that includes provisions they want to include in the legislation. This development is likely to delay the crypto bill’s markup, which was expected this month.
Senate Democrats Push Back On Stablecoin Provision In Crypto Bill
In an X post, journalist Eleanor Terrett shared a document that included the Democrats’ counteroffer to the Republicans’ December 4th offer. The Senate Democrats stated that they had accepted “significant portions” of the RFIA text but outlined requests on the GENIUS Act’s stablecoin-yield restrictions, token classification, illicit finance, and ethics in the crypto bill.
🚨NEW: Democrats negotiating the crypto market-structure bill say they’ve accepted “significant portions” of @BankingGOP’s RFIA text, but the GOP’s December 4th offer still misses key principles Dems are seeking. Their three-page counteroffer, a copy of which was sent to me, lays… pic.twitter.com/tWzOYfGzNn
— Eleanor Terrett (@EleanorTerrett) December 10, 2025
The Democrats Working Group expressed concern that interest or yield payments on stablecoin balances could trigger a bank run, with customers withdrawing deposits. They also stated that yields incentivize “risk behavior” and could threaten the financial system if the stablecoin lost its value.
The Senate Democrats further alluded to the GENIUS Act, which they noted prohibited stablecoin issuers from offering interest or yield. They also mentioned that during the GENIUS ACT negotiations, there was a bipartisan agreement that this crypto bill would address the issue for intermediaries and affiliate relationships.
As such, these Democrats believe they need to find a solution to this issue to protect the banking system while permitting rewards and incentives. They added that they think closing loopholes in the GENIUS Act’s yield prohibitions is a bipartisan issue.
This counteroffer comes just days after Variant Fund’s Chief Legal Officer, Jake Chervinsky, stated that the crypto bill markup was unlikely this year due to disputes over issues such as DeFi, yield, and ethics. The Senate Banking Committee Chairman Tim Scott had earlier expressed optimism that the markup could happen this December, but that now looks unlikely as negotiations drag on.
Concerns On Token Classification, Illicit Finance, And Ethics
The Senate Democrats also raised concerns about token classification, stating that they believe that additional safeguards are critical to protect traditional markets. In line with this, they pushed for several provisions, including a timely regulatory review of the SEC to determine the status of a proposed digital asset.
The Democrats further proposed continued disclosure requirements as long as ongoing entrepreneurial or managerial efforts exist in a project. Regarding illicit finance loopholes in the crypto bill, they proposed that authorities should effectively isolate digital asset services used by North Korean bad actors from the U.S. financial system.
On ethics, the Senate Democrats stated that public officials should not be able to use their offices to enrich themselves through crypto projects. As such, they propose limits on elected officials and their families from issuing, endorsing, or profiting from digital assets while in office.
This comes as Democrats have demanded a probe into Trump-backed World Liberty Financial. They have also, on several occasions, accused the U.S. president of corruption over his crypto ties.
Lastly, the Democrats noted that bipartisan representation in both the SEC and CFTC is necessary to ensure fair and effective regulation. As such, they are pushing for more Democratic commissioners in these agencies.