US Senate delays crypto market structure bill as Coinbase pulls support

The Senate Banking Committee has postponed its planned markup of a broad digital asset market structure bill, pushing back a Thursday session as talks to secure bipartisan support continue.

The delay landed hours after Coinbase withdrew its backing for the latest draft, escalating tension over provisions that would curb certain stablecoin rewards and set new oversight lines for market regulators.

Senate postpones markup amid bipartisan talks

Committee Chairman Tim Scott said late Wednesday that the panel would delay consideration of the bill to allow more time for negotiations.

He did not provide a new date for when the markup would be rescheduled.

“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 an emailed statement.

“This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement,” he added.

“The goal is to deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.”

The delay followed a similar move by the Senate Agriculture Committee, which on Monday postponed its own markup of the bill to Jan. 27.

That committee also had originally planned to take up the legislation on Thursday.

Agriculture Committee Chairman John Boozman said lawmakers had “made meaningful progress and had constructive discussions,” but needed more time to “finalize the remaining details and ensure the broad support this legislation requires.”

Both committees must advance the legislation because they oversee the two key regulators that would police the crypto market: the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Stablecoin rewards at center of lobbying fight

The postponement follows an intense lobbying battle focused on stablecoin incentives.

Banks have urged Congress to prevent crypto platforms from offering yield-like rewards that resemble interest on deposits.

They argue Congress set a baseline in the GENIUS Act, which bars stablecoin issuers from paying interest simply for holding a payment stablecoin, and want to close what they see as a loophole via exchange rewards.

The Banking Committee’s draft would limit certain stablecoin yield payments by third-party platforms.

Coinbase pulled support on Wednesday, with CEO Brian Armstrong saying the bill “would be materially worse than the current status quo” and that the company would prefer “no bill than a bad bill.”

He argued it imposes a “de facto ban” on tokenized equities, adds heavy restrictions on decentralized finance, and grants the government “unlimited access” to financial records.

Not all firms agree.

Coin Center, a16z, The Digital Chamber, Kraken, and Ripple have backed the Senate’s effort, reflecting a split within the industry over how far Congress should go on rewards, privacy, and compliance.

What the draft would do, and what comes next

The draft aims to clarify how tokens are classified and would place spot market oversight with the CFTC.

It would restrict paying interest solely for holding a stablecoin, while allowing rewards tied to activities such as payments or loyalty programs.

The Securities and Exchange Commission and the CFTC would set disclosure rules.

The House passed a related measure, the CLARITY Act, in July. Procedurally, both the Senate Banking and Agriculture committees must advance legislation because they oversee the SEC and CFTC, respectively.

The latest delay extends the wait for a unified framework that could replace case-by-case enforcement with a single set of rules.

For now, Scott signaled talks will continue. The timetable is unclear, but both committees say they want to finalize details and line up broad support before moving ahead.

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