Key Highlights

• The Senate Banking Committee has delayed a planned markup of its crypto market structure bill as industry and political opposition intensifies.
  
  
• Coinbase has withdrawn support, while Galaxy Digital CEO Mike Novogratz says the legislation is delayed, but not derailed.
  
  

Yello Paradisers! Efforts to establish a clear regulatory framework for U.S. crypto markets have hit another pause button.

The Senate Banking Committee confirmed it has postponed a long-anticipated markup of its digital asset market structure legislation, originally scheduled for Thursday, January 15, 2026. The delay reflects ongoing negotiations and unresolved disagreements over how crypto markets, tokenization, and decentralized finance should be regulated.

While committee leaders emphasized that talks remain active, the postponement underscores how difficult it has become to align lawmakers, regulators, and industry leaders around a single vision for crypto oversight.

Why the Markup Was Delayed

At the center of the delay is shifting industry support. Coinbase, one of the largest U.S.-based crypto exchanges, pulled its backing of the bill after reviewing the latest draft text. The company cited concerns over several provisions it believes would hinder innovation and worsen the regulatory landscape rather than improve it.

Lawmakers and stakeholders have also raised unresolved questions around how digital assets would be classified and which agencies would hold primary oversight authority. Those issues cut directly to the balance of power between the SEC and the CFTC, an old debate that remains anything but settled.

Committee members acknowledged that consensus was not yet strong enough to move forward with debate, amendments, and a vote, prompting leadership to delay the markup rather than force a fractured process.

Coinbase CEO: “Better No Bill Than a Bad Bill”

Coinbase co-founder and CEO Brian Armstrong publicly criticized the current version of the legislation, saying the company could not support it as written after more than two days of review.

Armstrong argued that the draft effectively bans tokenized equities, imposes broad restrictions on decentralized finance, and grants the government sweeping access to financial records. He also warned that the bill weakens the Commodity Futures Trading Commission while including draft amendments that could eliminate stablecoin rewards.

Despite those criticisms, Armstrong acknowledged bipartisan efforts behind the bill, stating that meaningful crypto legislation remains necessary, but not at the cost of innovation. His position was blunt: it is better to have no bill than a flawed one.

Political Fractures on Both Sides

Opposition is not confined to industry voices. From the Democratic side, Senator Elizabeth Warren has emerged as a prominent critic, warning regulators that tokenization provisions could expose retirement accounts to volatile digital assets. She has argued that the framework weakens consumer protections and limits the SEC’s ability to police risky financial activity.

Committee Chair Tim Scott emphasized that negotiations remain ongoing, describing the delay as part of an extended bipartisan process rather than a collapse. According to Scott, the bill reflects months of engagement with lawmakers, industry participants, investors, and law enforcement, with the goal of providing regulatory clarity while addressing national security and consumer protection concerns.

Novogratz: Delay Is Part of the Process

Despite the setback, Galaxy Digital CEO Mike Novogratz struck an optimistic tone. He said he has spoken with more than ten senators across both parties and believes there is still strong momentum behind passing a market structure bill.

According to Novogratz, delays at this stage are typical of complex legislation and reflect the tension of final negotiations rather than a breakdown. His message was simple: the bill will get done, just not on the original timeline.

What the Delay Means for Crypto Markets

The postponement injects fresh uncertainty into U.S. crypto regulation at a time when other jurisdictions are moving forward with clearer frameworks. Without legislative clarity, exchanges, developers, and institutional investors remain caught between enforcement-driven oversight and unresolved rules.

For markets, the message is familiar: regulatory risk remains a structural feature of U.S. crypto. Until lawmakers bridge divides over tokenization, DeFi, and agency authority, clarity will continue to arrive more slowly than the industry would like.

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