TLDR
- The U.S. Senate Banking Committee canceled the markup of the crypto market structure bill.
- Coinbase withdrew its support for the bill one day before the scheduled markup.
- Lawmakers remained divided over key issues including stablecoin rewards and ethics rules.
- Some Republicans on the committee did not fully support the current version of the bill.
- Wall Street lobbyists pressured lawmakers to oppose crypto yield programs in the legislation.
The U.S. Senate Banking Committee has canceled the markup of its crypto market structure bill, citing unresolved disagreements among lawmakers and industry leaders. The decision followed crypto exchange Coinbase’s withdrawal of support and ongoing policy disputes with other key stakeholders, leaving the bill without enough bipartisan backing. Committee Chairman Tim Scott confirmed the delay late Wednesday, and no new date has been scheduled for the markup.
Senate Crypto Bill Delayed After Disputes
Coinbase publicly withdrew its endorsement of the crypto market structure bill on Wednesday, disrupting momentum ahead of the committee’s planned hearing. The move reportedly intensified existing disagreements among negotiators, making it difficult to reach a consensus before Thursday’s markup session. Coinbase’s exit drew attention, but other issues had already weakened support for the legislation.
Tim Scott stated, “This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement.” He emphasized continued discussions despite the delay, explaining that leaders are “working in good faith.”
However, several Republicans on the committee were reportedly not aligned with the bill’s current provisions.
A major disagreement involved stablecoin reward programs, which continued to face opposition from Wall Street lobbyists. Traditional banks had urged lawmakers to block crypto yield programs, arguing they posed threats to the financial system. This pressure influenced lawmakers from both parties and created further uncertainty about the bill’s future.
Ethics Dispute and White House Opposition
Democrats raised ethical concerns about senior officials profiting from the crypto industry, calling for new restrictions in the bill. However, talks failed to produce a consensus on how to address those concerns within the current framework. Scott later said that ethics issues fall under the Senate’s ethics committee, not the banking panel.
Sources familiar with the discussions stated that the White House rejected several ethics-related proposals, citing conflicts with personal interests. According to reports, proposals targeting President Donald Trump’s family investments were turned down. Scott reaffirmed that resolving such matters lies with a separate Senate body.
Meanwhile, the Senate Agriculture Committee postponed its own markup of a related crypto regulation bill until the end of the month. The delay means that both legislative tracks remain open but uncertain. The agriculture panel must eventually coordinate with the banking committee to form a unified bill.
Ongoing Negotiations and Industry Response
The crypto market structure bill has been in development for several months, shaped by bipartisan input and industry feedback. Though delayed, discussions remain active among lawmakers, agencies, and crypto companies seeking regulatory clarity. Committee members continue to engage behind closed doors to find common ground.
Industry lobbying group Blockchain Association called the delay a “moment of recalibration,” not a final step for the legislation. CEO Summer Mersinger added that such moments “allow time for additional deliberation and refinement.” The group indicated it will stay engaged in the negotiation process.
The bill aimed to establish clear oversight roles for U.S. regulators in the growing crypto industry. While momentum has stalled, lawmakers emphasized they are not abandoning the effort. New developments may emerge once internal disputes are addressed.
