The postponement of the crypto market structure bill, which was scheduled to be debated in the US Senate, has deepened regulatory uncertainty and put pressure on crypto assets and related stocks.
Industry and Congressional Disagreements Highlighted
Galaxy Digital Research Director Alex Thorn stated that the Senate Banking Committee’s postponement of its planned review meeting on the Crypto Market Structure Act revealed significant disagreements between Congress and the industry on fundamental issues. These key points of contention include stablecoin yield mechanisms and DeFi regulation.
Coinbase CEO Withdraws Support, Leading to Postponement
The decision to postpone the proceedings came just hours after Coinbase CEO Brian Armstrong withdrew his support for the bill. Armstrong publicly announced his opposition to the provisions concerning tokenized securities, DeFi restrictions, and stablecoin yields. Following this development, Senate Banking Committee Chairman Tim Scott announced the postponement of the hearings, although a new schedule has not yet been shared. With the Senate scheduled to go on recess next week, discussions are not expected to resume until at least January 26–30.
Challenges in Achieving Political Consensus
According to Thorn, the draft text of the bill was released late at night with only 48 hours notice, and over 100 amendments were proposed. The emergence of new points of contention until the very last minute severely hampered the achievement of political consensus.
Market Reaction to the Postponement
In the markets, crypto assets generally declined following the news of the postponement. Bitcoin and Ethereum experienced a fall of approximately 2% during the day. Crypto-related stocks in the US also faced selling pressure. Coinbase shares fell by 6.5%, Robinhood by 7.8%, and Circle by 9.7%.
Analysis of the Deepening Political Divide
In his analysis, Thorn noted that while there was broad agreement on the core "market structure" aspects of the bill, a significant political divide emerged on non-core but highly sensitive issues. These include stablecoin yields, DeFi compliance, and the granting of authority to the SEC over tokenized securities. Thorn concluded, "The apparent differences aren’t huge, but the real chasm is deep."