US Senate Banking Committee Postpones Crypto Regulation Vote

The US Senate’s push to establish a comprehensive regulatory framework for digital assets has stalled after the Senate Banking Committee pulled a planned vote on a wide-ranging crypto market structure bill.

The committee had been expected to mark up the market structure bill this week, in what would have been the Senate’s first substantive step towards regulating the broader crypto market. However, Chairman Tim Scott confirmed the session had been postponed indefinitely, citing ongoing discussions among 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, set out how digital tokens are classified, and introduced rules for trading venues, custody, and market conduct.

The delay highlights the difficulty of reaching consensus on how digital assets should be supervised, despite months of bipartisan negotiations. At the centre of the impasse is a dispute over stablecoins and whether issuers should be permitted to offer interest or rewards.

Banking groups have lobbied heavily against such features, warning they could divert deposits away from regulated institutions and weaken traditional funding models.

Political divisions also resurfaced over proposed ethics measures that would limit senior public officials from profiting from crypto-related activities, and industry support for the bill fractured ahead of the scheduled vote when crypto exchange Coinbase withdrew its backing.

The setback complicates Washington’s broader attempt to move beyond case-by-case enforcement and provide clarity for firms operating in the sector. While related legislation is still expected to advance through the Senate Agriculture Committee, the Banking Committee’s work has been seen as central to defining how regulators oversee crypto markets.