Key Crypto Market Structure Bill Delayed, Pushed to February
January 15, 2026 — A major U.S. crypto market structure bill has been delayed but is not dead, with negotiations set to continue into February. According to Senator Cynthia Lummis, the legislation remains viable despite intense lobbying opposition from traditional finance. The delay provides the crypto industry crucial weeks to address key issues like stablecoin yield and DeFi protections.
Immediate Details & Direct Quotes
The Senate Banking Committee has postponed a critical hearing on the comprehensive crypto market structure legislation. Committee Chairman Tim Scott characterized the move as a “brief pause,” pushing for further negotiation. “Everyone is still at the negotiating table,” confirmed Senator Cynthia Lummis, who chairs the committee’s crypto subcommittee, in a social media post on Thursday.
Significant disagreements persist, particularly around provisions restricting how stablecoin yield rewards can be paid—a top issue for Coinbase. “We are hard-pressed to see a different middle ground,” wrote Jaret Seiberg, a financial policy analyst at TD Cowen, in a client note. “It is why this could end up being a straight up or down vote on whether stablecoins can earn rewards on platforms.” Despite dropping support for the current draft, Coinbase CEO Brian Armstrong struck an optimistic note, saying he’s “quite optimistic that we will get to the right outcome with continued effort.”
Market Context & Reaction
The delay follows a fierce lobbying battle where Wall Street banks and securities industry representatives argued that stablecoin yield threatens the traditional banking system’s deposit base. This argument gained traction with some lawmakers, creating headwinds for the crypto industry. “We would give an edge to the banks on such a vote, even though crypto campaign contributions are greater,” Seiberg noted, highlighting the political influence of community banks.
Parallel to the Banking Committee’s work, the Senate Agriculture Committee is continuing its own bipartisan effort, with a hearing currently scheduled for January 27. The crypto industry’s substantial political influence, demonstrated by the Fairshake PAC’s war chest of over $100 million for the midterm elections, is now being tested. Cody Carbone of the Digital Chamber emphasized the urgency, stating, “We cannot afford to walk away from the table at a moment when clarity is within reach.”
Background & Historical Context
This legislative push is years in the making, with crypto firms being newer entrants to Washington’s policy arena compared to established banking and securities lobbyists. The current bill follows the path of previous efforts like the GENIUS Act, which faced similar roadblocks before passing with bipartisan support. The process has been marked by typical Congressional volatility, including setbacks last October when proposed DeFi rules caused concern.
A major point of contention unrelated to market structure is a Democratic push for an ethics provision, focused on potential conflicts of interest. Senator Ruben Gallego, the lead Democrat on ethics, told reporters he would need a guarantee on such a provision before supporting the overall bill. This external issue remains out of the direct control of crypto negotiators, who are focused on policy details surrounding yield, DeFi, and regulatory jurisdiction.
What This Means
In the short term, the crypto industry has a narrow window to regroup and negotiate more favorable terms on stablecoin yield and DeFi protections before the Senate Banking Committee potentially revisits the bill in February. The coming weeks will be a critical test of the sector’s lobbying power and its ability to counter traditional finance narratives.
Long-term, the passage of any comprehensive market structure bill would provide unprecedented regulatory clarity for the U.S. digital asset industry. However, the intense debate underscores the significant friction between innovative crypto models and established financial frameworks. For investors and companies, the outcome will determine the operational viability of key services like yield-bearing stablecoins and decentralized finance platforms in the United States.
Meta Description: The U.S. Senate delays a major crypto market structure bill to February amid a lobbying fight with Wall Street, focusing on stablecoin yield and DeFi rules.
Primary Keywords: crypto market structure bill, Senate Banking Committee, stablecoin yield, DeFi protections, lobbying