Senate Crypto Bill Quietly Slips Housing Plan Into Market Rules

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A newly released Senate Banking Committee crypto bill is drawing attention after lawmakers quietly inserted a separate housing proposal into the 309-page legislation. The updated draft focuses largely on stablecoins, DeFi regulation, crypto market structure, and the like, but pages 300 through 309 outline a federal housing initiative called the “Build Now Act.” The discovery sparked immediate debate online ahead of a key Senate markup vote scheduled for later in the week.

Stablecoin and DeFi Language Returns to Center Stage

Specifically, the updated draft, which was released by Senate Banking Committee Chair Tim Scott and Senators Cynthia Lummis and Thom Tillis on May 12, includes revised language around stablecoin rewards and protections for non-custodial developers under the Blockchain Regulatory Certainty Act (BRCA).

The bill aims to establish clearer jurisdictional boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) and addresses long-running industry complaints about regulation-by-enforcement.

One of the biggest disputes earlier this year centered around stablecoin rewards. Coinbase and several crypto firms previously pushed back against proposed restrictions, leading to delays in the Senate process. 

The latest version includes compromise language from Senators Angela Alsobrooks and Thom Tillis that blocks firms from offering interest-like rewards on stablecoin holdings. As Tim Scott explained:

“This bill reflects serious, good-faith work across the Committee and delivers the certainty, safeguards, and accountability Americans deserve. It puts consumers first, combats illicit finance, cracks down on criminals and foreign adversaries, and keeps the future of finance here in the United States. Now it is time to move forward.”

Meanwhile, banking groups still appear unhappy with the proposal. The American Bankers Association (ABA) warned that the legislation could encourage capital flight from traditional banks into stablecoins, potentially affecting liquidity and financial stability across the broader banking system.

The bill also keeps BRCA protections for software developers and decentralized finance (DeFi) infrastructure providers, though law enforcement groups have raised concerns that the language could create blind spots for investigations tied to money laundering and illicit finance.

Trump Crypto Conflicts and Housing Clause Spark Debate

However, one major issue remains unresolved: ethics provisions tied to President Donald Trump’s crypto ventures. 

Democrats including Elizabeth Warren and Kirsten Gillibrand have repeatedly argued that lawmakers can’t advance major crypto legislation without addressing potential conflicts of interest tied to Trump-linked projects, including World Liberty Financial (WLFI) and various meme coin ventures.

The updated text released Monday night doesn’t include restrictions preventing federal officials or lawmakers from financially benefiting from digital assets. As Warren warned:

“The American people are watching. No Member of the Committee should support a bill that fails to stop the massive conflict of interests posed by Donald Trump and his family’s crypto ventures.”

At the same time, another section of the legislation unexpectedly shifted attention toward housing policy. 

According to the findings shared by journalist Eleanor Terrett in an X post on May 12, buried inside the draft is the “Build Now Act,” which proposes a federal pilot program aimed at encouraging local housing growth through future SEC and CFTC rulemaking tied to incentives and development frameworks.

The inclusion of housing language inside a crypto market structure bill quickly triggered confusion online, with critics questioning why unrelated legislation had been folded into a digital asset proposal already facing heavy political resistance.