A planned legislative markup by the Senate Banking Committee has been postponed as Coinbase CEO Brian Armstrong withdrew his support for a market structure bill that seeks to codify federal regulations on the crypto, stablecoin and DeFi markets.
The unexpected withdrawal reportedly exacerbated existing tensions between senators debating the bill and lawmakers who were trying to reorder critical phrases.
Republican surveillance concerns
Senate Republicans, led by Sen. Tim Scott, responded strongly. They expressed reservations about whether this project is intended to help ordinary investors or just a few companies.
While some representatives have expressed concerns that broad supervisory authority could hinder growth beyond the proposed net returns for stablecoins, reports have indicated that Republicans want more defined enforcement authority as opposed to broader regulatory language.
Crypto builders need clear rules of conduct.
Over the past five years, Republicans, Democrats, and the Trump administration have worked closely with members of the crypto industry to protect decentralization, support developers, and give entrepreneurs a fair chance.
To his…
– Chris Dixon (@cdixon) January 15, 2026
Bitcoin unaffected by gridlock
Despite the confusion, cryptocurrency prices remained firm. Bitcoin held firm and climbed 1.5%. The leading crypto asset maintained its grip on the $96,000 level, while other top cryptocurrencies like Ethereum and USDT also saw similar gains over the past 24 hours, based on the latest market tracking figures.
Meanwhile, investors followed the speeches and conference sessions. Market volatility has increased. Some investors chose to stay on the sidelines as lobbyists and exchanges sought to shape the coming project.
After reviewing the Senate Banking Bill over the past 48 hours, Coinbase unfortunately cannot support the bill as written.
There are too many problems, including:
– A de facto ban on tokenized actions
– DeFi bans, giving the government unlimited access to your finances…–Brian Armstrong (@brian_armstrong) January 14, 2026
In response to the new bill released by the Senate, several industry representatives strongly opposed its provisions and expressed their belief that it could have a negative impact on tokenized stocks and decentralized finance.
In fact, Armstrong has raised enough concerns in the blockchain industry that he would rather see no bill than see a bad bill passed, indicating that even some in his industry agree with Republicans’ concerns about possible congressional overreach.
These industry groups said they would likely withdraw their support unless the Senate makes the necessary changes to allow continued innovation and cross-border competition regarding blockchain technology.
Negotiations continue to take place behind closed doors
Some Senate leaders still want to move toward a committee vote, even if disagreement remains deep. Republican and Democratic lawmakers are currently negotiating or exchanging potential amendments on issues including stablecoin legislation, DeFi protections and investor protection in an effort to reach agreement on a version of the bill acceptable to both parties.
Democrats have identified the need to address regulatory issues regarding ethics, potential money laundering, and DeFi over-regulation as top priorities. On the other side of the aisle, the Republican Party continues to push for legislation that clearly defines federal regulators’ guardrails regarding blockchains.
Due to ongoing negotiations, there is currently no set timetable for the Senate vote on the new legislation.
Featured image from Unsplash, chart from TradingView
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
