Key U.S. crypto legislation faces new uncertainty as Senate negotiators delay action, signaling intensifying political and industry clashes over how digital asset markets should be regulated and who should control the future of tokenization and DeFi.
Senate Banking Committee Postpones Crypto Market Structure Markup Amid Growing Policy Fractures
A long-awaited Senate Banking Committee markup has been delayed as negotiations continue behind the scenes. The Senate Banking Committee announced on Jan. 14 that it will postpone consideration of its digital asset market structure legislation while bipartisan discussions remain ongoing.
The announcement states:
“Senate Banking Committee Chairman Tim Scott (R-S.C.) today announced that the Committee will postpone its markup of digital asset market structure legislation as bipartisan negotiations continue.”
Scott added, “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.” He emphasized that discussions remain active across party lines and stakeholder groups, framing the delay as a continuation of negotiations rather than a legislative setback.
The senator outlined that the bill reflects months of bipartisan engagement and incorporates input from innovators, investors, and law enforcement, with an objective of establishing clear rules of the road for digital asset markets while strengthening consumer protections, national security priorities, and regulatory clarity.
Read more: SEC Chair Anticipates Trump Signing Crypto Market Structure Bill
The postponed markup comes as opposition to the crypto market structure framework intensifies from both industry leaders and influential lawmakers, highlighting unresolved divisions over the bill’s direction.
Coinbase CEO Brian Armstrong withdrew his support this week, describing the draft as “materially worse than the status quo” and criticizing what he characterized as a de facto ban on tokenized equities alongside new decentralized finance ( DeFi) restrictions that he argues threaten user privacy. From the Democratic side, Senator Elizabeth Warren has emerged as a leading critic, recently warning the U.S. Securities and Exchange Commission (SEC) that what she called tokenization loopholes could expose retirement savers to volatile assets through 401(k) plans. While Armstrong has pushed back against what he views as banking lobby interference that could undermine crypto innovation and stablecoin rewards, Warren has argued that the framework weakens consumer safeguards and constrains the SEC’s ability to police financial “gambling.”
Committee members continue refining provisions in an effort to reconcile these competing concerns, reduce regulatory fragmentation, and provide clearer compliance expectations for market participants. Supporters maintain that a durable federal framework could improve investor confidence, encourage responsible innovation, and help ensure the future of finance is built in the United States, even as negotiations extend the legislative timeline.
FAQ 🧭
- Why did the Senate Banking Committee delay the crypto market structure markup?
The markup was postponed to allow ongoing bipartisan negotiations aimed at resolving key disagreements and improving regulatory clarity for digital asset investors. - How does the delay affect crypto and fintech investors?
The delay extends regulatory uncertainty, which may impact near-term investment decisions while increasing the importance of monitoring policy risk. - What are the main investor concerns with the current draft legislation?
Critics argue the bill could restrict tokenized equities, limit DeFi activity, and introduce compliance burdens that may dampen innovation and returns. - Why could a finalized federal crypto framework matter for long-term investors?
Supporters believe a clear, bipartisan framework could boost investor confidence, reduce regulatory fragmentation, and strengthen U.S. leadership in digital finance.