Crypto Market Structure Bill Stalls as Senate Banking Postpones Markup

The U.S. Senate Banking Committee announced on January 14, 2026, that it would delay the markup of a proposed crypto market structure bill originally scheduled for January 15. The decision came hours after Coinbase CEO Brian Armstrong voiced strong opposition to the bill, stating it could not be supported in its current form. The legislation, if passed, would define regulatory roles for the SEC and CFTC and clarify how tokens are classified.

Armstrong highlighted several issues with the bill, including concerns over tokenised equities, the erosion of CFTC authority, and the potential impact on stablecoin rewards. The delay reflects ongoing negotiations among lawmakers and industry stakeholders to address these concerns and ensure broad support.

The bill seeks to provide a clear framework for crypto regulation by determining whether tokens are classified as securities, commodities, or other categories. It would also assign the CFTC responsibility for policing spot crypto markets.

Why Did This Happen?

The Senate Banking Committee Chairman, Tim Scott, emphasized that the delay was necessary to continue bipartisan negotiations and ensure the bill could gain support from key players. Scott stated that discussions with industry leaders and lawmakers continued in good faith. The bill was already facing scrutiny from both the crypto and traditional finance sectors, with differing views on how best to regulate the market.

Coinbase’s withdrawal of support has raised concerns about the bill’s viability. The company had previously been a major backer and had invested in political action committees to support pro-crypto candidates . Armstrong’s criticism focused on provisions that he believed could stifle innovation and unfairly disadvantage stablecoin users .

How Did Markets Respond?

The delay has created uncertainty among crypto investors and companies who had been hoping for regulatory clarity. Some fear that without timely legislation, the U.S. could fall behind other global markets in shaping crypto policy .

Industry representatives and lawmakers are now under pressure to find a compromise that satisfies both regulatory and industry needs. The bill’s fate will depend on how well these negotiations proceed in the coming weeks .

What Are Analysts Watching Next?

Analysts are closely monitoring the next steps for the bill, including whether the Senate Banking Committee will hold additional sessions to refine the text .

There is also interest in how the Senate Agriculture Committee will handle its version of the bill. Both committees must finalize their drafts before the legislation can be reconciled with the House’s CLARITY Act .

Given the current political landscape and the importance of the bill to the future of the crypto industry, the outcome of these negotiations could have long-term implications for both regulation and market development .

The delay also highlights the broader challenges of regulating a rapidly evolving sector. With the SEC continuing to pursue enforcement actions against crypto firms, the need for a comprehensive and balanced legislative approach is more urgent than ever .

As the bill moves forward, lawmakers will need to address concerns from both industry players and traditional financial institutions to build a framework that supports innovation while protecting consumers .