The Senate Banking Committee shelved its crypto market structure bill after Coinbase withdrew support, saying Wall Street banks, ethics battles and partisan splits left no clear path to a markup.
Summary
- Chairman Tim Scott canceled the markup without a new date and said discussions with crypto companies, banks and senators continue, but key disagreements remain unresolved.
- Wall Street banks have pushed back on stablecoin yield provisions, while Democrats clashed with the White House over ethics rules limiting officials’ personal crypto profits.
- The Agriculture Committee will now consider a parallel bill, even as the Banking Committee continues its leadership role in shaping a comprehensive U.S. crypto framework.
The Senate Banking Committee has canceled a scheduled hearing on cryptocurrency market structure legislation, according to an announcement from committee chairman Tim Scott.
The delay followed Coinbase’s public withdrawal of support for the bill. Scott announced the decision late in the day, stating that no new timeline has been set for reconsidering the legislation.
“We are committed to creating a clear framework that protects consumers, strengthens national security and ensures that the future of finance is built in the United States,” said Scott. The chairman indicated that discussions will continue with the cryptocurrency sector, financial institutions and senators from both parties.
Scott acknowledged uncertainty over whether disagreements could be resolved quickly during negotiations, the statement said.
The bill faced opposition on several fronts. Wall Street banks have lobbied against provisions that enable “stablecoin yield” programs, arguing that such products threaten traditional banking operations, reports show. The banking industry’s efforts convinced senators from both parties to oppose the measure.
Scott reportedly faces uncertainty about gaining support for the legislation from all Republican members of his party.
Democratic lawmakers raised concerns about ethics regulations that would prevent senior government officials from personally profiting from activities in the cryptocurrency sector. According to reports, these proposals have been rejected by the White House. Scott stated that the matter falls under the jurisdiction of the Senate Ethics Committee and not the Banking Committee.
The cryptocurrency industry has made extensive lobbying efforts and campaign spending to promote regulation in recent years.
The Senate Agriculture Committee is expected to consider similar legislation later this month. The Banking Committee has played a leading role in developing comprehensive cryptocurrency regulations in the United States.
