Senate Banking Committee Delays Markup of Key Crypto Bill Amid Reports of Fraying Industry Consensus

The Senate Banking Committee has postponed the highly anticipated markup session for a major bipartisan digital asset regulatory framework bill, citing the need for ‘further technical refinement and continued consensus building.’ The delay comes amid growing internal rifts within the cryptocurrency industry regarding specific provisions of the legislation, complicating the path to passage.

Sources familiar with the matter indicate that the committee lacked the necessary guaranteed votes, largely because industry groups, who initially pushed strongly for federal clarity, have become increasingly divided over the bill’s details. The legislation aims to establish clear jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and set comprehensive rules for stablecoins.

While large, centralized exchanges and traditional finance institutions generally support the framework, decentralized finance (DeFi) advocates and privacy-focused groups have voiced fierce opposition to requirements they view as overly burdensome or antithetical to decentralized principles. Key disagreements center on proposed definitions of ‘control’ concerning DAOs and the stringent reporting requirements for self-custody wallets.

‘What one segment of the industry sees as vital consumer protection, another sees as innovation strangulation,’ stated a representative of a major Washington lobbying firm. ‘That fractured support means senators who were leaning ‘yes’ are now wary of alienating key donors or ideological blocs.’

If the committee fails to reschedule the markup quickly, the delay could effectively kill the bill’s chances of passing during the current legislative session, extending the period of regulatory uncertainty for the digital asset market into the next year.

Source: Senate Banking Committee Delays Markup of Key Crypto Bill as Industry Support Frays