Senator John Kennedy (R-LA) has publicly challenged a rushed timetable for a sweeping Senate bill that would rewrite how digital assets are regulated, saying lawmakers aren’t ready to move on a comprehensive framework set for September 30 markup.
Kennedy told reporters he still has “a lot of questions” about the proposal led by Senate Banking Committee Chair Sen. Tim Scott (R-SC), and contrasted the effort with July’s passage of the GENIUS Act, which he called an “a baby step” compared with the larger market-structure changes now under discussion. The GENIUS Act targeted dollar-pegged stablecoins; the new bill aims to establish rules across the whole crypto ecosystem.
Policy and industry experts say those broader changes raise significant operational and financial questions. Nitesh Mishra, co-founder and CTO of hedging platform ChaiDEX, told reporters that traditional banks and large financial institutions “aren’t ready,” citing gaps in risk management, compliance, and technical infrastructure. Central banks and regulators, he added, often act as brakes, pushing for stringent consumer protections and limited direct engagement with crypto.
The crypto industry has intensified lobbying for clearer federal rules, arguing that legal certainty is essential for firms to operate in the U.S. under a friendlier administration. But political math complicates the timeline: Sen. Scott expects fewer Democratic backers than the bipartisan support that passed the GENIUS Act, estimating roughly 12–18 Democrats might join. With Republicans holding a narrow 53-seat majority, Scott needs cross-party support to advance the measure — and Kennedy’s doubts suggest GOP unity can’t be taken for granted.
What’s next: lawmakers can either press ahead with the September 30 markup or pause to resolve technical and compliance questions first. Rushing a “full leap” bill risks regulatory gaps and unintended impacts on financial stability; a slower, targeted approach could produce clearer, more workable rules for institutions and markets.
Source: Decrypt. Read the original coverage for full details.