The US Senate’s efforts to establish a comprehensive regulatory framework for digital assets have stalled after the Senate Banking Committee passed a wide-ranging crypto market structure bill.
The committee was expected to mark up the market structure bill this week, which would have been the Senate’s first substantial step toward regulating the broader crypto market. However, Speaker Tim Scott confirmed that the session had been postponed indefinitely, citing ongoing discussions between lawmakers and industry stakeholders.
The bill was designed to establish a clear framework for how the US crypto market should operate. It would have defined the respective roles of federal regulators, defined how digital tokens are classified and introduced rules relating to trading platforms, custody and market conduct.
The delay highlights the difficulty in reaching consensus on how digital assets should be overseen, despite months of bipartisan negotiations. At the center of the standoff is a dispute over stablecoins and whether issuers should be allowed to offer interest or rewards.
Banking groups have lobbied hard against such features, warning they could siphon deposits away from regulated institutions and weaken traditional financing models.
Political divisions also resurfaced over proposed ethics measures that would limit high-ranking officials from profiting from crypto-related activities, and industry support for the bill fractured ahead of the planned vote when crypto exchange Coinbase withdrew its support.
The setback complicates Washington’s broader attempt to go beyond enforcing measures on a case-by-case basis and provide clarity to companies operating in the sector. Although related legislation is still expected to advance in the Senate Agriculture Committee, the Banking Committee’s work has been seen as critical in shaping how regulators oversee crypto markets.
