Senate Banking Committee Delays Crypto Bill Markup After Industry Support Fractures

Senate Banking Committee Chair Tim Scott postponed a planned committee markup of sweeping cryptocurrency market structure legislation, abandoning plans to hold a vote last week amid renewed industry opposition and uncertainty over bipartisan support. The decision came less than 24 hours before the scheduled markup, following public criticism of the bill from Coinbase, the largest U.S.-based cryptocurrency exchange.

Scott had spent months negotiating with a group of crypto-friendly Senate Democrats in an effort to advance the bill with bipartisan backing. As of the evening before the markup, however, several Democrats remained opposed, and some Republicans also continued to raise concerns, making committee passage uncertain.

“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” Scott said in a statement announcing the markup was postponed. “This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement. The goal is to deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.”

Coinbase CEO Brian Armstrong said the draft legislation “would be materially worse than the current status quo,” citing concerns that the bill could weaken the Commodity Futures Trading Commission’s authority and restrict rewards tied to stablecoin holdings. Banking groups have pushed for tighter limits on stablecoin rewards, arguing that yield-bearing products could drain deposits from the traditional banking system. Amendments addressing those concerns were expected to be offered during the markup, adding to the bill’s political complexity.

While Coinbase expressed opposition, other crypto firms urged lawmakers to proceed, maintaining that federal market structure rules are necessary to prevent offshore migration of digital asset activity.

It remains unclear when Scott will reschedule a markup on the legislation. With disagreements persisting over stablecoin rewards, regulatory jurisdiction, and consumer protections, the bill now faces a longer and more uncertain path forward in the Senate.