U.S. Senate delays crypto market structure bill amid industry and political rifts

Delay of Crypto Bill and Its Impact

The U.S. Senate Banking Committee has cancelled the markup of a sweeping crypto market-structure bill, marking a significant delay in legislative efforts for comprehensive digital asset regulation after months of negotiations. Committee Chairman Tim Scott confirmed that the bill will not be taken up as scheduled and no new date has been set, following public opposition from Coinbase, which withdrew its support, only deepening existing rifts among lawmakers and industry participants. This bill was meant to clarify how federal agencies oversee the U.S. crypto industry, dividing authority between regulators and setting rules for trading venues, token classification, and market conduct. However, unresolved issues like stablecoin rewards programs emerged as contentious points, eroding party unity and highlighting challenges in creating a cohesive regulatory framework. For the market, this delay reinforces regulatory uncertainty. Digital assets showed slight declines following the announcement, with Bitcoin trading lower as investors reassess the prospects for U.S. legislative progress.