US Senate Delays Crypto Bill Markup Amid Industry Pushback

Senate Banking Committee Chairman Tim Scott announced on Thursday the postponement of the markup for the digital asset market legislation, originally scheduled for that day. In a statement, Scott emphasized that discussions remain active, stating he has “spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.” His goal, he reiterated, is to “deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.” The delay was anticipated, as Senator Cynthia Lummis had indicated the markup for the controversial legislation was likely to be pushed back.

While no new date was specified for the markup of the CLARITY Act, industry observers expect it to occur before the end of the month. This procedural pause reflects the complexity of the negotiations. The bill, a product of months of work, aims to establish a comprehensive regulatory framework but has encountered substantial resistance from key industry stakeholders who argue the current draft goes too far in restricting core crypto activities.

The postponement follows a significant defection from within the crypto industry. Major exchange Coinbase publicly pulled its support for the bill this week. “After reviewing the Senate Banking draft text over the last 48 hours, Coinbase unfortunately can’t support the bill as written,” said CEO Brian Armstrong on Wednesday. The company’s opposition centers on specific provisions that industry observers blame on lobbying pressure from traditional banks.

According to analysis, these provisions would prevent or limit users from earning yields on stablecoins—a major point of contention for companies like Coinbase. The macroeconomics outlet Milk Road commented, “Regulatory clarity that shrinks investor upside isn’t progress,” noting that Armstrong was “pointing out the cost embedded in this draft.” The criticism outlines that while the bill clarifies regulatory jurisdiction, it does so by “banning stablecoin yield, narrowing tokenized asset pathways, and expanding surveillance in DeFi.” This tension highlights a fundamental debate: whether new rules will foster a competitive U.S. crypto ecosystem or unduly constrain it.

Not all industry voices are entirely opposed. Ripple CEO Brad Garlinghouse struck a more conciliatory tone, commenting, “We are at the table and will continue to move forward with fair debate. I remain optimistic that issues can be resolved through the markup process.” This contrast illustrates the varied positions within the sector as it navigates the legislative push.

The news of the delay had a tangible, if muted, impact on cryptocurrency markets. Bitcoin (BTC), a key market indicator, hit a two-month high of $97,700 in late trading on Thursday before retreating as the postponement news broke. The asset slid to approximately $96,500, though it remained marginally up on the day and posted a notable weekly gain of over 5.5%. The reaction suggests the market is closely monitoring regulatory developments but is not currently panicking over the legislative hiccup.

The path forward now hinges on the closed-door negotiations referenced by Chairman Scott. The core challenge is reconciling the demands of traditional financial stakeholders, who may seek to limit competitive threats from crypto yield products, with the innovation-driven goals of the digital asset industry. The outcome of the CLARITY Act markup, when it eventually occurs, will signal whether U.S. lawmakers can strike that balance. For now, the delay is a stark reminder that establishing “clear rules of the road” for crypto in America is a contentious and unfinished journey.