The U.S. Senate Banking Committee has delayed action on a major cryptocurrency market structure bill following Coinbase’s decision to withdraw support for the current draft, according to Reuters.
The bill had been scheduled for committee markup this week and was widely viewed as a central pillar of congressional efforts to establish a comprehensive federal framework for digital asset regulation.
Coinbase pulls support ahead of scheduled markup
Coinbase Chief Executive Brian Armstrong said the company could not back the legislation in its present form, citing provisions he argued would restrict tokenized securities, limit decentralized finance activity, and prohibit certain stablecoin incentive mechanisms.
Armstrong said the draft would leave the U.S. crypto market in a worse position than under existing regulatory conditions, prompting the exchange to formally withdraw its endorsement ahead of the scheduled vote.
Senate Banking Committee postpones consideration
Following Coinbase’s announcement, the U.S. Senate Banking Committee confirmed that the markup would be delayed to allow additional discussions among lawmakers and industry stakeholders.
Committee leadership did not provide a revised timeline for when the bill may return for consideration, though aides said negotiations are expected to continue in the coming weeks.
Scope of the proposed legislation
The proposed bill seeks to define when digital assets fall under securities regulation and when they qualify as commodities, a distinction that would determine whether oversight rests primarily with the Securities and Exchange Commission or the Commodity Futures Trading Commission.
It also addresses rules governing spot crypto markets, token issuance, and certain stablecoin practices, areas that have been the subject of prolonged debate between lawmakers, regulators, banks, and crypto firms.
Market response remains muted
Cryptocurrency markets showed limited immediate reaction to the delay. Bitcoin prices held near recent highs, while crypto-related equities traded modestly lower in early U.S. trading.
The setback highlights the fragile consensus surrounding U.S. crypto legislation, even as bipartisan efforts continue to advance a long-awaited regulatory framework for the sector.
