Catenaa, Thursday, January 15, 2025- Sweeping US cryptocurrency legislation stalled this week after the Senate Banking Committee postponed a planned markup hearing, following a split among industry backers and unresolved bipartisan disagreements.
The delay came after Coinbase CEO Brian Armstrong withdrew support for the bill, citing concerns over provisions affecting stablecoin returns, decentralized finance and tokenized equities.
Lawmakers had been preparing to advance a framework dividing digital asset oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Committee Chairman Tim Scott postponed the hearing as negotiations intensified behind closed doors. Republican sponsors said discussions remain active and described the move as tactical rather than a collapse of the effort.
Supporters of the bill argue it reflects months of bipartisan talks and input from regulators, investors and law enforcement.
They say the measure is intended to establish clear jurisdictional boundaries, reduce regulatory uncertainty and strengthen consumer protections while keeping digital asset development in the US.
Industry reaction has been mixed. While Coinbase stepped back, other firms urged lawmakers to continue. Executives from major crypto platforms and advocacy groups warned that failure to act would leave US companies facing uneven rules compared with overseas competitors.
Analysts are divided on the impact of the delay. Some believe additional time could help build broader support across party lines.
Others warn that the bill faces difficult vote math, as most legislation requires 60 votes in the Senate and several provisions criticized by industry were added to attract Democratic backing.
Complicating talks further, at least one Democratic negotiator has indicated opposition to the current draft. Some Democrats are also seen as favoring a later legislative push, potentially after the next election cycle.
The Senate Agriculture Committee, which oversees the CFTC, plans to hold its own hearing later this month. Any final legislation would require approval from both committees before a full Senate vote.
