Washington’s effort to put clear rules around crypto ran into another roadblock this week after the Senate Banking Committee postponed a key vote on a sweeping market structure bill — just hours after Coinbase pulled its support.
Committee Chairman Tim Scott said late Wednesday that the markup would be delayed as bipartisan talks continue, though he did not offer a new timeline.
The pause followed a public break from Coinbase CEO Brian Armstrong, who said the company could no longer back the latest draft of the bill. The legislation is meant to clarify how crypto tokens are classified and would shift oversight of spot crypto markets to the Commodity Futures Trading Commission (CFTC).
“After reviewing the Senate Banking draft text over the last 48 hours, Coinbase unfortunately can’t support the bill as written,” Armstrong said.
Industry Pushback Complicates Negotiations
Coinbase’s objections landed in the middle of an intense lobbying battle over stablecoin rewards — particularly whether crypto platforms should be allowed to offer yield-like incentives that resemble interest on bank deposits.
Banks have been pressing lawmakers to shut that door. They argue Congress already set a clear boundary in the GENIUS Act, which bars stablecoin issuers from paying interest simply for holding a payment stablecoin. In their view, the market structure bill should prevent exchanges from skirting that rule through reward programs.
Despite the backlash, Scott signaled that negotiations are still very much alive.
“This bill reflects months of serious bipartisan work and real input from innovators, investors, and law enforcement,” he said. “Our goal is to deliver clear rules of the road that protect consumers, strengthen national security, and ensure the future of finance is built in the United States.”
Another Delay for Crypto Clarity
Under the current draft, platforms would be barred from paying interest just for holding stablecoins, but could still offer rewards tied to activities like payments or loyalty programs. The SEC and CFTC would be responsible for setting disclosure and oversight rules.
The committee had planned to take up the bill during a Thursday session scheduled for 10 a.m. ET. With the markup now postponed, the crypto industry is once again left waiting for legislation that could replace years of regulation-by-enforcement with a single, coherent framework.
And the delays aren’t limited to one committee. Senate Agriculture Committee Chairman John Boozman has also pushed his panel’s crypto markup further into January, saying lawmakers need more time to settle unresolved policy questions and build broader support.
For now, the path to clear crypto rules in Washington remains uncertain — and unfinished.
