The latest push to establish a comprehensive U.S. crypto market structure framework hit a snag this week after Coinbase withdrew its support a few hours before lawmakers canceled the hearing that could advance the bill. The setback has reignited debate across the industry, particularly within decentralized finance (DeFi), where some see the pause less as a defeat and more as an opportunity to reset the conversation.
DeFi leaders have begun weighing in on what comes next. Mike Silagadze, founder of Ether.fi, said he isn’t alarmed by the delay, arguing that the bill in its current form would have done more harm than good.
“I’m not too worried about it — I actually think it’s positive, because the bill as it stood was very bad for crypto,” Silagadze said to CoinDesk over telegram. He added that the proposal would have restricted yield on holding stablecoins and imposed significant limits on DeFi, but expects “a better version will eventually come back to the table.”
Senior industry lawyers echoed that view, framing the delay as a negotiating signal rather than a collapse. Bill Hughes, senior counsel and director of global regulatory matters at Consensys, said to CoinDesk the pause shows lawmakers and industry backers are willing to walk away rather than accept provisions that would overregulate decentralized technology.
“The parties pushing for more government oversight and control need this bill more than DeFi does, at least in the short term,” Hughes said, adding that the setback serves as a reminder of “what they lose if they don’t get something done.”
As a result, he said, future markups could leave proponents of stricter oversight “less inclined to demand things which force us to walk away.”
On the surface, a delay to a bill that would have made it easier for institutions to participate in DeFi is a net negative, but in reality what it means is that the sector is avoiding an overly restrictive framework in the short-term, with a warmer framework on the cards when the revised bill hits the table, said Ripple CEO Brad Garlinghouse on X.
Coinbase’s decision to withdraw support for the bill demonstrates that even the biggest exchange in the U.S. was willing to walk away from a bill it saw as potentially halting innovation.
Armstrong was seen at the House on Thursday, indicating that Coinbase’s move is a temporary one until a revised bill is on the table.
The committee’s chair, Senator Tim Scott, a South Carolina Republican, said in a statement that he had “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.”
Consensys’ Hughes said that while the bill was imperfect, crypto firms still hold leverage in shaping the outcome.
“The sponsors and the industry will walk away from market structure legislation rather than accept overregulation of decentralized tech,” he said, adding that the delay sends a clear message to senators pushing harder lines that “they need this bill more than the industry does.”
That dynamic, he suggested, could lead to a revised proposal and brings key backers like Coinbase back into the fold.
Read more: Coinbase pulls support from crypto market structure bill