Crypto Market Dips as Senate Postpones Market-Structure Bill Discussion After Coinbase Withdrawal

The U.S. crypto market experienced a decline on January 15, 2026, following news that the Senate had postponed markup discussions for the Digital Asset Market Clarity Act of 2025. The Senate Agriculture Committee, which oversees the Commodity Futures Trading Commission (CFTC), pushed the hearing to the last week of January. This delay adds to growing uncertainty over the future of digital asset regulation and market structure reform. Coinbase, a leading U.S. crypto exchange, withdrew support from the bill earlier in the week, citing concerns over restrictions on stablecoin rewards and tokenized equities.

The bill seeks to define digital commodities and clarify the roles of the CFTC and SEC in regulating crypto activities. It also outlines registration and compliance standards for entities involved in digital assets. A key focus is the classification of digital commodities as blockchain-based assets, excluding securities and derivatives. However, Coinbase CEO Brian Armstrong stated the bill contains too many issues, including a de facto ban on tokenized equities.

Markets reacted quickly to the developments, with Bitcoin trading at $96,435 as of January 15. The broader market cap for cryptocurrencies stood at $3.35 trillion, but the dip in the Senate's progress raised concerns about regulatory clarity and investor confidence. Coinbase's withdrawal also highlighted growing tensions between industry leaders and regulators over how to balance innovation with oversight.

Why Did This Happen?

Coinbase's decision to withdraw support from the bill came in response to specific provisions about stablecoin yields and intermediaries. The company emphasized that it would prefer no bill over a poorly structured one. According to Bloomberg, the company is particularly concerned about any restrictions on stablecoin rewards, a key revenue stream for platforms like Coinbase. The bill's draft includes provisions that could limit how stablecoin rewards are offered, which the company argues would stifle innovation and limit financial opportunities.

The Senate Agriculture Committee had initially scheduled the markup on January 15 in coordination with the Banking Committee. However, the Agriculture Committee's leadership cited the need for more time to finalize negotiations on outstanding issues. The bill is seen as a critical step in defining how the SEC and CFTC will jointly regulate the crypto market.

How Did Markets React?

The crypto market reacted with caution as news of the Senate's delay and Coinbase's withdrawal spread. Bitcoin rose 1.39% in the previous 24 hours but showed signs of volatility. Analysts noted that the bill's outcome could have significant implications for the market structure, particularly if it fails to provide clarity on regulatory roles and responsibilities.

Coinbase's move also sparked a broader debate about the balance between regulation and innovation. Alex Thorn of Galaxy Research emphasized that a bipartisan bill that clearly defines token classifications and delineates regulatory jurisdictions would be a major bullish catalyst for crypto adoption. However, the absence of a clear regulatory framework is now seen as a potential drag on market growth.

What Are Analysts Watching Next?

Industry observers are now closely watching how the Senate Agriculture Committee finalizes the bill before the January 31 markup. Key issues under negotiation include the treatment of DeFi protocols and anti-money laundering rules. Some Democratic senators are pushing for additional ethics provisions to prevent conflicts of interest, including restrictions on public officials profiting from crypto connections.

Regulatory clarity remains a top priority for industry players, as highlighted by the GENIUS Act and its focus on stablecoin yields. Analysts suggest that the final version of the bill will need to address concerns from both Wall Street and crypto companies to gain broad support.

The market will also watch for updates from the Senate Banking Committee, which is still scheduled to hold its markup hearings. The outcome of these discussions could determine whether the bill moves to a full Senate vote and, ultimately, whether the U.S. establishes a unified regulatory framework for digital assets.

As the debate continues, the crypto market remains in a state of flux. Investors are advised to monitor both regulatory developments and market sentiment, as shifts in policy could have long-term implications for the adoption and growth of digital assets in the U.S.