Tim Scott Says Everyone Remains At The Table In 'Good Faith' As Senate Delays Crypto Bill Markup After Opposition From Coinbase

Senate Banking Committee Chair Sen. Tim Scott (R-S.C.) said late Wednesday that the committee is delaying the markup of cryptocurrency market structure legislation amid opposition from industry figures.

‘Brief Pause’ To Establish Consensus

Scott said in a statement that the committee is taking a “brief pause” before moving to markup and that all stakeholders involved are “working in good faith.”

David Sacks, the White House Crypto Czar, said that the passage of the market structure legislation is “as close as it's ever been” and urged the industry to use this pause to sort out the differences.

Lummis Is ‘Deeply Dissappointed’

Sen. Cynthia Lummis (R-Wyo.) thanked Scott for his “commitment” to find a common ground.

“Today’s response from some in the industry proves they just are not ready, and while I am deeply disappointed, I am committed to taking this feedback and partnering with the industry to deliver a product that helps them thrive,” she stated.

Coinbase Withdraws Support

The delay came hours after Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong said the company will not support the current version of the bill due to provisions related to stablecoin rewards, tokenized equities and “erosion” of CFTC’s authority.

What Next For Crypto Bill?

The window is narrowing to pass this crucial legislation, which seeks to establish a federal regulatory framework for cryptocurrencies. Galaxy Research suggested that there was only a 25% chance that enough Democrats would break ranks to give the bill a meaningful chance of becoming law.

Bernstein analysts warned the legislation must advance by the second quarter or risk stalling amid midterm election politics, with stablecoin rewards emerging as the key stumbling block.

Earlier this week, the Senate Agriculture Committee postponed the markup of the agriculture version of the cryptocurrency market structure bill to the last week of January.

Galaxy Digital Inc. (NASDAQ: GLXY) CEO Mike Novogratz expressed confidence earlier on Wednesday that the bill “will get done soon,” reminding that it always gets “tense” at the end.

Price Action: Bitcoin (CRYPTO: BTC) traded up 1.44% at $96,203 as of this writing.

Coinbase shares lost 2.15% in after-hours trading after closing 1.25% higher at $255.86 during Wednesday’s regular trading session.

The stock maintains a weaker price trend over the short, medium, and long terms with a poor Momentum ranking, according to Benzinga’s Edge Stock Rankings.

Image via Shutterstock/ Adam McCullough