Senator Kennedy Rejects GOP Timeline for Crypto Market Bill

John Kennedy opposes Tim Scott’s plan to fast-track Senate crypto market structure legislation

Experts warn banks and regulators remain unprepared for rapid digital asset reforms

The House passed the CLARITY Act but Senate divisions and DeFi criticism complicate progress

Senator John Kennedy (R-LA) said the Senate is not prepared to advance sweeping cryptocurrency market structure legislation this month. His comments came as Senate Banking Chair Tim Scott (R-SC) pressed for a September 30 markup despite opposition from Democrats, banks, and fellow Republicans. According to a report by Politico, Kennedy told reporters the committee has too many unresolved issues to move forward on the bill.

Disagreement Over Timing and Scope

Scott has promoted a rapid schedule to match the House-passed CLARITY Act, which aims to establish federal oversight. Kennedy, however, called the Senate’s version a “full leap” compared with the targeted stablecoin rules enacted in July.

The stablecoin-focused GENIUS Act established federal standards for dollar-pegged tokens. Kennedy described that legislation as a “baby step” in contrast with the broad framework now under discussion. He said senators still have “a lot of questions” about digital asset regulation, including consumer protections and institutional readiness.

Industry and Expert Concerns

Industry analysts and policy specialists have raised concerns that rushing a comprehensive package could destabilize markets. Nitesh Mishra, co-founder of hedging platform ChaiDEX, said traditional banks remain unprepared for sudden shifts. He cited compliance issues, technology gaps, and risk management as areas still unresolved.

Mishra added that central banks often press for stronger safeguards, limiting direct involvement with digital assets until stricter rules exist. Without addressing those concerns, he said broad legislation could strain financial stability and hinder adoption among regulated entities.

House Bill and Political Calculations

The House approved the CLARITY Act after extended debate. Supporters framed it as a necessary measure for investor protection and market certainty. House Majority Whip Tom Emmer stated that the Senate would ultimately adopt the House’s bill due to its longer development.

The Senate version faces a narrower path. Scott said he expects 12 to 18 Democrats may back the legislation. Republicans currently hold 53 seats, requiring at least seven Democratic votes to secure passage. Kennedy’s doubts signal that Republican unity is also uncertain, adding further complexity to the negotiations.Decentralized finance advocates have criticized the CLARITY Act, saying the requirements resemble restrictions applied to centralized exchanges. Several industry leaders argued that imposing those measures could undermine DeFi operations in the United States. Crypto companies, however, continue lobbying for regulatory clarity under the Trump administration’s pro-market stance. Firms see comprehensive rules as essential for operating with legal certainty in domestic markets.