The U.S. Senate Banking Committee has postponed its planned markup of a comprehensive cryptocurrency market structure bill, a significant setback for legislative efforts to establish clear regulatory frameworks for the industry. The delay was announced late Wednesday by Committee Chairman Senator Tim Scott, who cited the need for continued bipartisan negotiations and did not set a new date for the session.
The decision came hours after Coinbase CEO Brian Armstrong publicly withdrew his company's support for the latest draft of the bill. Armstrong stated, "After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written." This move placed the bill in the middle of an intense lobbying battle, particularly over provisions related to stablecoin rewards.
The draft legislation, which aims to clarify how crypto tokens are classified and place spot market oversight with the Commodity Futures Trading Commission (CFTC), had recently seen a total of 137 amendments. A core point of contention is a provision that would restrict paying interest or yield-like incentives simply for holding a stablecoin, a practice the banking industry argues is an end-run around existing laws like the GENIUS Act. The bill would still allow rewards tied to specific activities like payments or loyalty programs.
Despite the postponement, key figures signal negotiations are ongoing. Ripple CEO Brad Garlinghouse, a vocal supporter of Senator Scott's proposal, called the bill a "massive step forward" and stated, "Ripple (and I) know firsthand that clarity beats chaos, and this bill’s success is crypto’s success." He expressed optimism that issues could be resolved through the markup process, praising the effort to create "workable frameworks for crypto, while continuing to protect consumers."
Senator Scott echoed this sentiment, stating on social media, "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." He emphasized that the bill reflects "months of serious bipartisan negotiations" with the goal of delivering clear rules that protect consumers and ensure the future of finance is built in the United States.
The delay extends the industry's wait for a legislative path that could replace years of case-by-case enforcement with a unified framework. This postponement follows a broader shift in the Senate's crypto calendar, as the Agriculture Committee, led by Chairman John Boozman, has also pushed its related markup deeper into January to finalize policy details and build support.
