The U.S. Congress is poised to take a historic step in regulating the crypto market as Senator Cynthia Lummis's bipartisan bill is expected to be XEM in January 2026.
After ten years of uncertainty, this bill promises to bring clarity to innovators, protect consumers, and help the digital asset industry thrive in the US instead of moving overseas.
The pace of regulatory development accelerated after Lummis withdrew.
Wyoming Senator Cynthia Lummis – who has consistently called for transparency in the digital asset sector – announced on December 19th that she will not seek re-election . Despite withdrawing, she reaffirmed her commitment to advancing her bipartisan bill.
“Our digital asset market structure bill brings the clarity that industry innovators need while protecting consumers,” Lummis wrote on Twitter on Sunday.
She stressed that clear regulations are key to fostering innovation right here in the U.S. This post came just one day after Ms. Lummis mentioned another significant development in the regulatory framework: Governor Waller's "skinny master account" Shard .
According to Ms. Lummis, this plan will end Operation Chokepoint 2.0 and usher in a truly innovative era for payment services.
The crypto community is watching closely. Meanwhile, SEC Chairman Paul Atkins and many industry figures such as Merlijn the Trader believe this bill could bring unprecedented legal certainty.
“After ten years of instability, the legal framework is finally taking shape. Markets rarely reflect reality fully when there is regulatory clarity,” Merlijn observed .
Meanwhile, David Sacks, Trump's chief AI and crypto negotiator , confirmed that progress is being made in working with congressional leaders.
“…we are closer than ever to passing the major bill on crypto market structure that President Trump has been calling for. We hope to finalize it by January!” Sacks Chia .
The SEC's Crypto project paves the way for development.
In November 2025, further progress was made when SEC Chairman Paul Atkins announced “Project Crypto,” introducing a four-part Token classification system. This framework Chia digital assets into digital goods, collectibles, utilities, and Tokenize securities.
Most Token, except Token tied to ongoing investment contracts, will now no longer be under SEC oversight, providing the clarity the industry has long awaited.
Brokerage regulations have also been clarified, and the SEC has held discussions to balance innovation and market transparency.
Approaching banks, coordinating between agencies, and next steps.
December also saw several new milestones. On December 16th, the FDIC approved full insurance for a national crypto bank, and stablecoin payment accounts entered the public comment period.
The Federal Reserve's master account framework is expected to expand banking access for compliant crypto entities. The approval of leadership appointments at the CFTC and FDIC , as well as legislation like the SAFE Crypto Act, demonstrates growing bipartisan consensus toward comprehensive regulatory reform.
The XEM of the bill next January will be a turning point. If passed, the Lummis bill could:
- Affirming America's leading position in digital assets,
- Providing the regulatory clarity that startups have always wanted, and
- Help the United States maintain its competitiveness in the fast-paced global crypto race.
With bipartisan support and growing expectations, 2026 is likely to be the year America "restores order" to the crypto market.
