The U.S. Senate Banking Committee has postponed its markup of a major cryptocurrency market structure bill after crypto exchange Coinbase publicly withdrew its support for the legislation on Wednesday.
The committee, led by Chairman Tim Scott, canceled Thursday’s scheduled markup session with no new date set. The bill, which aims to define how federal regulators will oversee the U.S. crypto industry, had been the subject of months of bipartisan negotiations.
Coinbase’s withdrawal on the eve of the hearing highlighted growing divisions among industry participants over the bill’s provisions. The company’s decision to publicly oppose the legislation signaled deeper concerns about specific regulatory frameworks proposed in the measure.
“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” Scott said in a statement. “This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement.”
Multiple obstacles had already threatened the bill’s progress before Coinbase’s announcement. Wall Street bankers mounted vigorous lobbying efforts against stablecoin rewards programs, one of the bill’s central and most controversial provisions. Their opposition convinced lawmakers from both parties that traditional banking faced potential threats from the crypto industry.
Scott acknowledged uncertainty about whether differences among negotiators could be resolved in time for the hearing. The chairman indicated he could not even count on full Republican support for the legislation due to banking sector concerns.
Another significant sticking point involved ethics requirements that would restrict senior government officials from personally profiting from the crypto industry. Democratic lawmakers pushed for these provisions, but the Trump White House opposed them, citing concerns about the proposals’ targeting of administration family interests. Scott told reporters that ethics matters should be handled by the Senate’s ethics committee rather than the banking panel.
The cryptocurrency industry has spent years lobbying and considerable campaign resources to reach this legislative moment. The Senate Agriculture Committee, which must also pass a related bill before the two can be merged into law, had already delayed its own markup until the end of January.
Despite the postponement, industry observers expressed cautious optimism about the process continuing. Summer Mersinger, CEO of the Blockchain Association, called the delay “a moment of recalibration, not an endpoint.”
“On complex issues like digital asset market structure, moments like this can be a healthy part of policymaking, allowing time for additional deliberation and refinement,” Mersinger said in a statement.
See also: U.S. Senators File 75+ Amendments to Landmark Crypto Bill Before Banking Committee Hearing
The Banking Committee’s work has served as the leading edge of efforts to establish comprehensive federal crypto regulations. The postponement does not necessarily signal the end of regulatory discussions, as both committees maintain interest in developing market structure legislation.
If you’re reading this, you’re already ahead. Stay there by joining Dipprofit’s private Telegram community.
Discover more from Dipprofit
Subscribe to get the latest posts sent to your email.
