Washington’s push to write clear rules for crypto hit another snag after the Senate Banking Committee postponed its planned markup of a sweeping market structure bill, hours after Coinbase pulled support for the latest draft.
Chairman Tim Scott said late Wednesday the committee would delay the markup as bipartisan negotiations continue, but did not set a new date.
The delay came after Coinbase CEO Brian Armstrong publicly withdrew support for the draft bill, which aims to clarify how crypto tokens are classified and place spot market oversight with the CFTC.
Armstrong wrote, “After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.”
Scott Signals Ongoing Talks Despite Industry Pushback
Coinbase’s objections landed in the middle of a fast-moving lobbying fight over stablecoin rewards, with banks pressing lawmakers to prevent crypto platforms from offering yield-like incentives that can look and feel like interest on deposits.
The banking industry says Congress already drew that line in the GENIUS Act, which prohibits stablecoin issuers from paying interest or yield simply for holding a payment stablecoin, and it argues the market structure bill should close what it calls an end run via exchange rewards.
Scott said he has spoken with stakeholders and signaled negotiations continue.
“This bill reflects months of serious bipartisan negotiations and real input from innovators, investors and law enforcement,” he said. “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.”
Markup Delay Extends Wait For Clear Crypto Framework
The draft in play would restrict paying interest solely for holding a stablecoin, and it would still allow rewards tied to activities such as payments or loyalty programs, with the SEC and CFTC tasked with setting disclosure rules.
The committee had aimed to take up the bill in a Thursday session originally set for 10 am ET, and the delay leaves the industry waiting again for a legislative path that could replace years of case by case enforcement with a single framework.
The Senate’s broader crypto calendar is already shifting. Senate Agriculture Committee Chairman John Boozman has also pushed his committee’s markup deeper into January, saying lawmakers need more time to lock down remaining policy details and build broad support.
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