Crypto Market Structure Bill Paused: Senate Banking Committee Cancels Markup in Surprise Move

The legislative gears for crypto ground to a sudden halt today. The Senate Banking Committee pulled the plug on its scheduled markup for the long-awaited Crypto Market Structure Bill, leaving the industry in a familiar state of regulatory limbo.

What Happened Behind Closed Doors?

No official reason was given for the cancellation. Industry chatter points to last-minute disagreements over key provisions—likely the perennial battles around jurisdiction between the SEC and CFTC, and definitions that could make or break decentralized protocols. It's the classic D.C. tango: two steps forward, one very public step back.

The Immediate Fallout

The delay throws cold water on hopes for near-term regulatory clarity. Projects operating in the U.S. must continue their high-wire act, balancing innovation against the ever-present threat of enforcement actions. Expect the lobbying blitz to intensify as factions re-group and re-strategize.

For markets, it's a mixed bag. The uncertainty perpetuates a headwind for institutional adoption, yet also delays potentially restrictive rules that could curb current operations. Traders shrugged off the news—digital assets barely flinched. After all, they've priced in bureaucratic gridlock years ago.

The Long Game

This isn't the end of the road. The bill's proponents will work to resolve the sticking points and re-schedule. But every delay pushes the timeline further, risking that the next election cycle completely resets the board. The industry's plea for a rulebook is met with the Senate's favorite reply: 'We'll get back to you.'

So, the waiting game continues. Innovators build, regulators ponder, and lawyers rack up billable hours—the only sure bet in town. Sometimes, the most significant action in Washington is inaction. For crypto, the path forward remains as clear as mud, proving once again that when it comes to finance, the only structure Congress excels at is building committees.

Coinbase Breaks Ranks Late

The immediate catalyst was Coinbase CEO Brian Armstrong, who said the exchange “can’t support the bill as written” after reviewing “the Senate Banking draft text over the last 48hrs.”

Armstrong argued the draft contains multiple provisions he says WOULD be “materially worse than the current status quo,” contending that it amounts to “a defacto ban on tokenized equities,” includes “DeFi prohibitions” that expand government access to financial records and erode privacy, and would “stifl[e] innovation” by weakening the CFTC relative to the SEC.

He also pointed to “draft amendments” he said “would kill rewards on stablecoins,” warning the changes could allow banks to “ban their competition.” Armstrong’s bottom line was blunt: “We’d rather have no bill than a bad bill.” Still, he struck a conciliatory note about process and odds of a compromise, adding he was “quite optimistic” that continued work could produce “the right outcome.”

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities – DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

That posture split the difference between hard opposition to the text and support for continued negotiations,an important distinction as the markup process is typically where senators offer and vote amendments.

Crypto Industry Split

Coinbase’s stance quickly triggered a counter-response from other major crypto firms and advocacy groups backing the Senate Banking GOP’s push. Support was voiced by a16z, Circle, Kraken, The Digital Chamber, Ripple, and Coin Center, coalescing into a public front aimed at keeping momentum intact despite the delay.

Ripple CEO Brad Garlinghouse cast the bill as overdue but directionally positive. “While long-overdue, this move by @SenatorTimScott and @BankingGOP on market structure is a massive step forward in providing workable frameworks for crypto, while continuing to protect consumers,” he wrote. He said Ripple would remain engaged, adding: “We are at the table and will continue to move forward with fair debate. I remain optimistic that issues can be resolved through the mark-up process.”

Meanwhile, Tim Draper said Armstrong’s opposition is justified, arguing the Senate compromise “is worse than no bill at all” and suggesting that “the banks have been meddling.”

Ryan Rasmussen, Head of Research at Bitwise Asset Management , called the current CLARITY Act draft broadly harmful, listing tokenization, stablecoins, DeFi, privacy, builders, users, investors, and innovation, and concluded that the industry would “rather have no bill than a bad bill.”

White House Crypto Czar David Sacks urged the industry to treat the delay as a narrow window to align rather than an opening to splinter. “Passage of market structure legislation remains as close as it’s ever been,” Sacks wrote. “The crypto industry should use this pause to resolve any remaining differences. Now is the time to set the rules of the road and secure the future of this industry.”

Galaxy Digitall’s CEO Mike Novogratz struck a more optimistic tone, saying: “While the crypto bill might be delayed to keep working on it, I am very confident that a bill will get done soon. I have spoken to over 10 senators on both sides of the aisle in the past 24 hrs and I believe they all are working in good faith to get something done. Always gets tense at the end.”

At press time, the total crypto market cap stood at $3.22 trillion.