Catenaa, Monday, April 20, 2026- Efforts to advance long-awaited Senate crypto market structure legislation have suffered another delay after Sen. Thom Tillis signaled that the Senate Banking Committee is unlikely to hold a markup hearing before the end of April, raising concern that the broader legislative push could slip deeper into the election cycle.
The latest delay centers on unresolved disagreements over stablecoin rewards, one of the most divisive issues in ongoing negotiations between lawmakers, banks and crypto companies.
Sen. Thom Tillis of North Carolina and Sen. Angela Alsobrooks of Maryland have spent months working on compromise language governing whether stablecoin users should be allowed to earn rewards through third-party platforms.
The GENIUS Act, approved in July, already prohibits stablecoin issuers from paying direct interest to holders. However, the law does not clearly address whether outside companies such as exchanges can offer rewards tied to stablecoin balances.
That gap has become a major battleground.
Banking groups argue that reward-bearing stablecoins could pull deposits away from community banks and traditional lenders, weakening funding bases and creating broader pressure on the financial system.
Crypto firms argue that restricting stablecoin rewards would slow innovation and prevent digital dollar products from evolving beyond simple payment tools.
According to recent discussions, lawmakers are considering language that would prohibit rewards on idle stablecoin balances while still allowing certain forms of yield connected to transactions and account activity.
People familiar with the talks say the current draft is already largely set, making major changes increasingly difficult.
Pressure has been building in Washington to move the broader crypto market structure bill before the political calendar becomes more difficult later this year.
A version of the legislation passed the House nearly one year ago. Earlier this year, a Senate Agriculture Committee version also advanced.
The Banking Committee must still approve its own version before lawmakers can merge the two Senate drafts and move toward a full Senate vote.
The bill would define whether digital assets fall under the authority of the Securities and Exchange Commission or the Commodity Futures Trading Commission. It would also establish rules for determining whether a token qualifies as a security or a commodity.
In addition, the legislation would create new disclosure standards for crypto companies and establish a clearer federal framework for stablecoins.
The latest setback increases the risk that crypto legislation may not pass before the November midterm campaign season dominates the Senate agenda.
Several lawmakers have warned that if the bill is not advanced by May, the opportunity to pass meaningful digital asset legislation may disappear until 2027.
That would leave the crypto sector operating under the same fragmented regulatory system that has existed for years, with companies continuing to face uncertainty over licensing, enforcement and token classification.
A prolonged delay could also affect institutional adoption, since many banks, payment firms and asset managers have been waiting for federal rules before expanding stablecoin and blockchain-related products.
Political Pressure Builds
Lawmakers and industry groups are continuing to press for action.
Sen. Cynthia Lummis previously said the committee was targeting an April vote, while Sen. Bernie Moreno warned that the next few months would be decisive for the future of digital asset regulation.
The Digital Chamber has also urged Senate Banking Committee leaders Tim Scott and Elizabeth Warren to schedule a markup as soon as possible.
The organization said more than 70 million Americans now own or use digital assets and argued that regulatory clarity is necessary to keep the United States competitive in financial technology.
Congress has spent several years debating how digital assets should be regulated and which agencies should oversee them.
The main debate has focused on whether cryptocurrencies should be treated more like securities, which are overseen by the SEC, or commodities, which are regulated by the CFTC.
Stablecoins have become an especially sensitive part of that discussion because they increasingly function as payment tools, savings products and settlement assets.
Banks worry that widespread use of reward-bearing stablecoins could reduce deposits inside the traditional financial system. Crypto firms believe those products are necessary for innovation and competition.
The current Senate bill is meant to create a more unified framework for digital assets, but disagreements over stablecoin rewards continue to slow progress.
