Week of January 12, 2026: Senate Market Structure Bill Updates; Introduction of Blockchain Regulatory Certainty Act of 2026; New DEF Blog Differentiating CeFi vs. DeFi Spot Markets; and more.

Senate Market Structure Bill Updates

On January 12, 2026, Senate Banking Committee Chairman Tim Scott (R-SC) released a new version of the Digital Asset Market Clarity Act, in the form of an Amendment in the Nature of a Substitute (ANS). The draft was intended for committee markup on January 15, but on January 14, 2026, the Markup was postponed to a later date.

Latest Draft: An Overview

The DEF team has been actively engaged behind the scenes and we have reviewed the current draft text in full. A few key considerations:

• While the ANS of the Digital Asset Market Clarity Act included important protections for software developers and self-custody, such as the Blockchain Regulatory Certainty Act (BRCA) in Section 604 and the Keep Your Coins Act in Section 605, the exemptions from securities laws for software developers and infrastructure providers in Section 601 are less robust than those included in the September discussion draft.
• While Section 601 provides key statutory exemptions from securities laws for developing and publishing software (including self-custody software) and providing base layer infrastructure, like operating a node or validating transactions, other activities would be left to SEC rulemaking. Additionally, the amendment to criminal code Section 1960 has been removed from this draft, a significant loss for software developer protections.
• The draft introduced a new Title 3, “Responsible Innovation In Decentralized Finance,” which the industry had not seen before. These include rulemakings for “non-decentralized trading protocols” (Section 301) and illicit finance requirements for “distributed ledger application layers” (Section 302), and other potentially problematic illicit finance provisions affecting DeFi technology.

DEF has already submitted feedback to the Banking Committee on these provisions and will continue to advocate for DeFi technology and developers as the language evolves.

Proposed Amendments

DEF has been actively monitoring the various amendments submitted ahead of the markup, with a particular focus on amendments that could impact DeFi. In a recent X thread, our team announced we’d be tracking Amendments and highlighting those that are harmful to DeFi.

Senate Agriculture Committee Delayed Markup

On January 12, 2026, Senate Agriculture Committee Chairman John Boozman (R-AR) announced a delay in the planned markup of digital asset market structure legislation, which had been scheduled for January 15, 2026.

On January 13, 2026, a subsequent notice clarified that the Agriculture Committee’s legislative text will be released on January 21, with the rescheduled markup set for January 27, 2026.

Senators Lummis and Wyden Introduce Blockchain Regulatory Certainty Act

On January 12, 2026, U.S. Senator Cynthia Lummis (R-WY), the Senate Banking Digital Assets Subcommittee Chair, and Senator Ron Wyden (D-OR) introduced the Blockchain Regulatory Certainty Act (BRCA) of 2026, which would provide critical protections for software developers and infrastructure providers of noncustodial, decentralized technologies—ensuring they will not be inaccurately and improperly treated as “money transmitters” under the Bank Secrecy Act and criminal law.

Notably, the BRCA was previously introduced on the House-side, sponsored by Representatives Tom Emmer (R-MN), Ritchie Torres (D-NY), Huizenga Bill (R-MI), Josh Gottheimer (D-NJ), and Warren Davidson (R-OH). In July 2025, it passed out of the House as part of the Clarity Act, underscoring the bill’s bipartisan support. The updated draft of the bill explicitly provides for federal preemption, solidifying a single federal framework for money transmission regulation and preventing a patchwork of state laws.

The BRCA, which was also included in the Senate Banking Committee’s September 2025 market structure draft, is an essential component of digital assets legislation. We appreciate the productive, bipartisan efforts to protect software developers from inappropriate regulation. As market structure negotiations continue, we urge all Congressional leaders to join Senators Lummis and Wyden in prioritizing clarity and protections for software developers building our financial future.

You can read the full draft bill here.

New DEF Blog: CeFi vs. DeFi Spot Market Differentiation

On January 12, 2026, DEF published an educational blog entitled “Digital Asset Spot Market Regulation: Distinguishing CeFi vs. DeFi.” The new blog explains how digital commodities and decentralized, noncustodial markets work, and why developer protections matter in market structure legislation. It highlights the key distinctions between centralized, custodial (CeFi) spot markets and decentralized, non-custodial (DeFi) spot markets—distinctions that should be reflected in final bipartisan market structure legislation.

You can read the full blog here.

DeFi Dictionary

2026 is off to the races. This week’s “Phrase of the Week”: Peer-to-peer transaction.

Notable and Quotable

“Many commercial crypto activities should be regulated—not because they’re dominated by criminals but to provide consumers and businesses with security and to enable this nascent technology to flourish in the U.S. under clear and constructive rules. […] Fortunately Washington recognizes that America’s prosperity depends on enabling technological innovation under fair, well-defined rules. The question isn’t whether to regulate crypto but whether we will lead the world in doing it right.”

——Pat Toomey, The Wall Street Journal: “How to Get Cryptocurrency Regulation Right (Op-Ed)”

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