Senate Delays Crypto Market Structure Bill After Coinbase Opposition

The U.S. Senate Banking Committee on Wednesday postponed a scheduled discussion on a sweeping crypto market structure bill, just hours after Coinbase CEO Brian Armstrong publicly opposed the legislation, raising fresh uncertainty around its path forward.

The draft bill, unveiled earlier this week, aims to establish a comprehensive regulatory framework for digital assets in the United States. Among its core provisions, the proposal seeks to clarify when crypto tokens should be classified as securities or commodities and would grant the Commodity Futures Trading Commission (CFTC) authority to oversee spot crypto markets.

Senate Banking Committee Chairman Tim Scott said discussions remain ongoing despite the delay.
“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 postponement of Thursday’s planned markup.

Earlier in the day, Armstrong said Coinbase could not support the bill in its current form. Writing on X, the CEO warned the draft contains “too many issues,” including what he described as a de facto ban on tokenized equities, a weakening of the CFTC’s authority, and proposed amendments that would “kill rewards on stablecoins.”

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Coinbase’s stance is significant. The company has been a central stakeholder in crypto policy discussions and donated millions of dollars to political action committees backing pro-crypto candidates during the 2024 election cycle. Without its support, the bill’s momentum in the Senate could be materially affected.

Armstrong argued that crypto firms should be regulated on equal footing with other financial services providers, stressing that poor legislation could do more harm than good.
“We’d rather have no bill than a bad bill,” he said, while adding that he remains optimistic lawmakers can still reach an acceptable outcome.

As drafted, the bill would prohibit crypto companies from paying interest to users solely for holding stablecoins. However, it allows rewards or incentives tied to specific activities, such as making payments or participating in loyalty programs.

The delay underscores ongoing tensions between lawmakers and industry leaders as Congress attempts to finalize long-awaited crypto legislation amid narrowing political timelines.