U.S. Senate delays crypto market construction invoice amid business and political rifts

Summary:

• Senate Banking Committee cancels crypto bill markup

• Coinbase withdraws support, exposing deeper divisions

• Stablecoin rewards and ethics rules key sticking points

• Bill aimed to define U.S. crypto regulatory framework

• Bitcoin trades slightly lower on renewed uncertainty

The U.S. Senate Banking Committee has cancelled its planned markup of a sweeping crypto market-structure bill, delaying what was set to be the Senate’s first major legislative vote on comprehensive digital-asset regulation after months of negotiations.

Committee chairman Tim Scott said talks were continuing, but confirmed that the legislation would no longer be taken up as scheduled and that no new date had been set. The setback follows public opposition from Coinbase, which withdrew its support on the eve of the markup, compounding existing rifts among lawmakers, regulators and industry participants.

The bill was designed to define how federal agencies oversee the U.S. crypto industry, including the division of authority between regulators and the rules governing trading venues, token classification and market conduct. It has been viewed as a cornerstone of Washington’s attempt to provide “rules of the road” after years of enforcement-driven regulation and legal uncertainty.

Several unresolved issues ultimately proved too difficult to bridge. One of the most contentious was whether to allow stablecoin rewards or yield-style programs — an idea strongly opposed by Wall Street banks, which warned such products could undermine traditional deposits. Lobbying on that front reportedly eroded Republican unity on the committee. Democrats, meanwhile, pushed for ethics provisions that would restrict senior government officials from profiting from crypto activities, proposals that the White House of Donald Trump was said to resist, arguing the issue fell outside the committee’s remit.

The delay is a setback for an industry that has spent years and significant political capital pressing for regulatory clarity. While the Senate Agriculture Committee is still expected to consider related legislation later this month, the Banking Committee’s work has been the leading edge of the broader effort.

For markets, the pause reinforces regulatory uncertainty. Digital assets edged lower following the news, with bitcoin trading slightly softer as investors reassessed the near-term prospects for U.S. legislative progress, even as longer-term momentum toward regulation remains intact.