The US Senate has temporarily halted efforts to establish a comprehensive legal framework for cryptocurrencies, citing widespread industry opposition and a shift in lawmakers’ focus. The Senate Banking Committee indefinitely postponed work on its long-awaited market structure bill, considered crucial for American crypto regulation. This delay followed Coinbase, a major crypto exchange, withdrawing its support for the bill. Subsequently, the committee redirected its attention to President Donald Trump’s housing affordability initiatives, potentially delaying legislation by several weeks or months.
Coinbase CEO Brian Armstrong expressed concerns about certain aspects of the bill, particularly rules related to stablecoin rewards. Industry experts argue that some provisions could weaken the Commodity Futures Trading Commission’s authority, restrict decentralized finance (DeFi), and reduce stablecoin incentives, which may hinder crypto innovation. Meanwhile, the traditional banking sector has pressured lawmakers to impose strict restrictions on yield-generating crypto products to prevent fund outflows from banks and instability in loan markets. This political and economic pressure complicates the legislative process further.
Other Senate committees have proposed various crypto regulation measures, but lack of bipartisan support hampers progress. The White House Digital Assets Council executive director emphasized that regulatory clarity is necessary, yet without industry cooperation, unfavorable regulations may result. This situation creates uncertainty for the US crypto market, making close monitoring of the legislative process essential in the coming months.
Source: bitcoinmagazine
