Sweeping crypto legislation hits major snag as Senate Banking Committee postpones markup

Major legislative efforts to establish a comprehensive federal framework for cryptocurrency and digital assets have encountered a significant roadblock this week. The Senate Banking Committee announced the indefinite postponement of the scheduled markup session for the Digital Asset Consumer Protection Act (DACP) and related regulatory bills.

The markup, originally slated for Thursday, was intended to be the final step before the legislation—which addresses everything from stablecoin issuance to market surveillance—could move to the full Senate floor for a vote. Committee Chairman Sherrod Brown (D-OH) issued a statement citing the need for “further bipartisan consultation” on several complex and highly contentious provisions, particularly regarding the regulatory authority split between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and stringent consumer liability measures.

This postponement is viewed by industry analysts and lobbyists as a major setback, potentially jeopardizing the chances of passing federal crypto regulation this year. Advocates, including key proponents Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY), have pushed for urgent clarity following months of market instability and high-profile bankruptcies. The delay suggests deep divisions remain within the Committee over the appropriate regulatory intensity, specifically concerning how stringent capital and reserve requirements should be for digital asset custodians.

While the underlying legislation is not officially withdrawn, the setback pushes the timeline perilously close to upcoming electoral deadlines, raising concerns that the current momentum may dissipate entirely. Committee staffers confirmed that internal negotiations are ongoing, but no new markup date has been scheduled.

Source: Sweeping crypto legislation hits major snag as Senate Banking Committee postpones markup