The U.S. Senate Banking Committee has delayed consideration of a long-awaited crypto market structure bill.
The delay comes after objections from Brian Armstrong of Coinbase raised fresh concerns about whether the legislation could advance in its current form.
The committee had been expected to move forward with a markup on Thursday, 15 January, but lawmakers opted to pause discussions following public criticism from Brian Armstrong.
He said the company could not support the draft as written and would prefer no bill to a “bad bill”.
Coinbase flags multiple deal-breakers
Armstrong outlined several areas of concern after reviewing the draft text. The concerns included provisions he said would amount to a de facto ban on tokenized equities.
Also, he flagged restrictions on decentralized finance that could expand government access to financial data, as well as amendments that would effectively eliminate rewards on stablecoins.
He also warned that the bill could weaken the authority of the Commodity Futures Trading Commission while expanding the role of the Securities and Exchange Commission, a shift long opposed by much of the crypto industry.
Coinbase’s stance marked a notable escalation, given the company’s role as one of the most influential industry participants in Washington and a long-time advocate for clearer crypto regulation in the United States.
Markup pause reflects vote uncertainty
The decision to delay the markup reflects uncertainty among lawmakers about whether the bill had sufficient support to advance out of committee.
Stablecoin provisions, in particular, have emerged as a key point of contention. Divisions were reported among Republicans, and lingering concerns among Democrats about consumer protection and conflicts of interest.
Under the current draft, crypto firms would be barred from paying interest on stablecoin holdings. At the same time, banks have argued that allowing such rewards could lead to deposit outflows.
Crypto companies counter that banning rewards would entrench incumbent financial institutions and undermine competition.
Senate leadership signals talks are ongoing
Despite the delay, Senate Banking Committee chair Tim Scott sought to emphasize that negotiations have not broken down.
Scott said lawmakers, industry participants, and regulators remain engaged in good-faith discussions, describing the pause as part of an ongoing bipartisan process.
The bill is intended to establish clearer definitions for when crypto assets fall under securities or commodities law and to clarify regulatory jurisdiction across federal agencies.
Legislative path remains uncertain
While Senate leaders have not ruled out returning to the bill after revisions, the delay highlights the influence major industry players can exert at critical stages of the legislative process.
For now, the market structure bill remains on hold as lawmakers assess whether changes can bridge gaps between regulators, financial institutions, and the crypto industry.
Final Thoughts
- The markup delay highlights how unresolved disputes over stablecoins, DeFi, and regulatory authority continue to complicate efforts to deliver clear US crypto rules.
- With negotiations ongoing, the bill’s future now depends on whether lawmakers can reconcile industry concerns without losing bipartisan support.
