- The Senate Banking Committee has postponed its markup of the digital asset market structure bill due to ongoing bipartisan negotiations.
- Coinbase CEO Brian Armstrong publicly opposed the bill, citing concerns over stablecoin rewards, tokenized equities, and erosion of CFTC authority.
- The delay highlights tensions between crypto innovation and traditional banking interests, potentially extending regulatory uncertainty.
The U.S. Senate Banking Committee has delayed its planned markup of a landmark crypto market structure bill, originally set for Thursday, following vocal opposition from Coinbase and amid unresolved bipartisan issues.
Committee Chairman Tim Scott (R-S.C.) announced the postponement, emphasizing that stakeholders remain engaged in good faith discussions. “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, highlighting the bill’s aim to protect consumers and bolster national security.
The bill seeks to clarify whether crypto tokens are securities or commodities and assign oversight of spot markets primarily to the Commodity Futures Trading Commission (CFTC). It has faced scrutiny over provisions restricting stablecoin rewards. Traditional banks have lobbied against these yields, arguing they pose risks to regulated deposits, while crypto advocates view them as essential for innovation.
Coinbase, a major player in the industry, withdrew support on Wednesday. In a detailed statement, CEO Brian Armstrong criticized the draft for imposing a de facto ban on tokenized equities, eroding CFTC authority in favor of the SEC, and eliminating stablecoin rewards. “We’d rather have no bill than a bad bill,” Armstrong stated, underscoring the need for fair treatment of crypto alongside traditional finance.
This development comes as the Senate Agriculture Committee also delayed its related markup until late January, signaling broader challenges in merging the legislation. Senator Cynthia Lummis (R-Wyo.) expressed disappointment but pledged to refine the bill based on industry feedback.
The postponement could heighten market volatility for assets like Bitcoin and Ethereum, as investors await clearer rules. While the delay allows for potential improvements, it risks stalling U.S. leadership in digital finance amid global competition. Analysts note that without resolution, ongoing enforcement actions may persist, though the current administration’s pro-crypto stance offers some optimism.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
© Cryptopress. For informational purposes only, not offered as advice of any kind.
