Crypto remains one of the few bipartisan issues in Congress in 2025. Industry participants are waiting for clarity on how digital assets fit into regulations and the tax code. However, lawmakers have yet to address a number of policy questions.
An issue Democrats have raised, but Republicans are against, is reopening a law enacted earlier in 2025 governing stablecoins to constrict a ban on issuers of those assets paying interest. According to Bloomberg Tax, the bank lobby—apprehensive about deposits being redirected into stablecoin accounts—has supported adding exchanges and other third parties to this limitation.
Several bipartisan negotiators on the package said they were hopeful about reaching a deal on the new rules in their jurisdiction in the next weeks.
An issue Democrats have raised, but Republicans oppose, is reopening a law enacted earlier this year governing stablecoins to tighten up a ban on issuers of those assets paying interest. The bank lobby, which fears a flood of deposits being siphoned into stablecoin accounts, has pushed to add exchanges and other third parties to that restriction.
Separately, the Senate Finance Committee is seeking bipartisan agreement on legislation that sheds light on how the tax code treats digital assets.
Earlier this year, Sen. Cynthia Lummis (R-Wyo.) introduced legislation on this topic that is supported by some Republican tax writers. Meanwhile, Sen. Steve Daines (R-Mont.) as well as Rep. Max Miler (R-Ohio), who both belong to tax-writing committees, have been working on other possible tax frameworks.
In an October hearing, Senators from both sides were interested in a bipartisan tax bill for crypto. However, rules for small transactions will most probably remain a key obstacle to finding an agreement.
The Finance Committee’s work will probably take a longer time to come together compared to other panels partly due to a tax bill that would likely need to pass the House first, Lummis noted Oct. 30.
Key lawmakers said that they have limited time to act prior to the midterm political season preventing the remaining appetite for bipartisan deals.
Crypto-focused super political action committees—which are already setting their sights on 2026’s federal elections—are accumulating roughly $263 million to support their allies while looking to unseat their opponents.
Any deal on crypto would risk breaking the Democratic caucus. Progressives warn against President Donald Trump’s executive order that eased crypto into $13 trillion 401(k) retirement accounts. Tax writers are also worried about the inclination of criminals to use crypto to launder money.