"The Senate Banking Committee indefinitely postponed work on its long-anticipated market structure bill - widely seen as the centerpiece of U.S. crypto regulation - after Coinbase, one of the industry's largest exchanges, publicly withdrew its support for the measure. The withdrawal came at a crucial moment before a scheduled markup hearing, where lawmakers would have debated amendments and potentially advanced the bill toward a floor vote."
"Several factors are contributing to the slowdown. Coinbase's withdrawal of support, following CEO Brian Armstrong's decision, shows there are some deep divisions between crypto firms and portions of the bill's drafters, mainly around stablecoin rewards. Industry leaders argue that provisions in the current text could weaken the Commodity Futures Trading Commission's authority, restrict decentralized finance (DeFi), and curtail stablecoin rewards - measures widely viewed as essential to continued crypto innovation."
The Senate Banking Committee postponed its market-structure crypto bill after Coinbase withdrew support, halting a planned markup and delaying a potential floor vote. The committee shifted immediate focus to other priorities, including housing affordability tied to the presidential agenda. Industry leaders cite deep divisions over stablecoin rewards and warn that current provisions could weaken the CFTC, restrict decentralized finance (DeFi), and curtail incentives important for innovation. Traditional banks lobbied for tighter limits on yield-bearing crypto products, warning of deposit outflows and lending instability. Lawmakers are trying to rebuild bipartisan consensus amid unresolved policy disputes, with delays likely extending into late February or March.
Read at Bitcoin Magazine
Unable to calculate read time
Collection
[
|
...
]