Senate Delays Crypto Market Structure Act Hearing Amid Disputes

Senator Tim Scott postponed the Senate Banking Committee’s hearing on the Crypto Market Structure Act, citing unresolved issues over stablecoin yields and DeFi restrictions.

The postponement impacts market regulation efforts, reflecting stablecoin industry concerns and causing cryptocurrency market declines, including Bitcoin and Ether, by about 2%.

Senate Hearing Postponed Over Stablecoin Yield Concerns

Alex Thorn announced in a tweet that Senator Tim Scott has pushed back the Crypto Market Structure Act hearing, initially scheduled for this week. This holds significant implications, primarily due to ongoing disagreements regarding stablecoin yields. Bank lobbying groups advocate for restrictions on stablecoin rewards, citing concerns about traditional bank deposit depletion and financial stability risks.

The postponement of the hearing brought immediate market reactions. Bitcoin and Ether both registered a 2% drop following the announcement. This market shift underscores the concerns that regulatory uncertainty continues to contribute to volatility in the cryptocurrency market.

Notable responses to the postponement came from various industry figures. David Sacks, White House Crypto Czar, reinforced commitment to the regulatory framework, saying,

Brian Armstrong of Coinbase expressed disappointment over privacy, DeFi, and stablecoin reward issues, thereby withdrawing support for the bill in its current form.

Impact on Bitcoin and Ether Following Senate Decision

Did you know? The ongoing delay in crypto legislation hearings recalls previous postponements, echoing last year’s pivotal GENIUS Act. Regulatory uncertainty then mirrored current stablecoin yield controversies.

As of January 17, 2026, Bitcoin (BTC) is trading at $95,166.01 with a market cap of $1.90 trillion. Its 24-hour trading volume shows a decline of 44.91%, according to CoinMarketCap. Price changes indicate a moderate decrease of 0.47% over the past 24 hours, countered by a 5.06% rise over the past week.

Insights from Coincu Research suggest continued regulatory ambiguities could lead to potential financial disruptions and technological shifts in DeFi protocols. Stablecoin yield restrictions remain central, with legislative outcomes potentially impacting the broader crypto ecosystem. Senator Scott’s statement on market structure markup discussion provides more detail on the legislative challenges.