The U.S. Senate Banking Committee has postponed its consideration of the Digital Asset Market Structure Act, a key piece of crypto regulation, to prioritize housing affordability legislation. The committee's markup hearing, a critical step in the legislative process, has been pushed back and is now expected to occur in late February or early March 2026.
The delay stems from a shift in political priorities. Following an executive order signed by President Donald Trump to restrict large institutional investors from buying single-family homes, lawmakers are focusing on housing cost legislation. This issue is seen as politically urgent after concerns over housing costs contributed to Republican election losses last year.
Legislative progress was already facing significant hurdles. Last week, Coinbase, a major U.S. cryptocurrency exchange and a significant donor to the Trump administration, publicly withdrew its support for the Banking Committee's draft bill. CEO Brian Armstrong stated the company opposed provisions that would limit stablecoin yields, arguing they unfairly favor traditional banks over crypto firms and would stifle innovation and U.S. competitiveness.
This withdrawal highlights a core conflict stalling the bill. Banking organizations are advocating for limits on stablecoin yields to prevent deposits from leaving traditional institutions, citing systemic risk. Crypto companies argue such limits are anti-competitive and harmful to innovation. These disagreements have made it difficult for legislators to find a compromise that balances innovation with appropriate oversight.
In a parallel development, the Senate Agriculture Committee released its own version of the market structure legislation on Wednesday evening, ahead of its planned markup hearing on January 27. However, the committee's Republican chair, Sen. John Boozman, noted they had not reached an agreement on "fundamental policy issues." Eventually, the two committee versions must be merged into a single bill that can secure the 60 votes needed for a Senate floor vote.
Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, urged for prompt passage before momentum is lost under the current administration, stating, "Let's not let perfect be the enemy of the good." The delay, however, may provide crypto companies more time to lobby for a version of the bill that can gain wider industry support.
