The Senate Banking Committee pushed back its crypto market structure bill until late February or March after Coinbase Global Inc. (NASDAQ:COIN) withdrew support, with lawmakers now prioritizing housing legislation instead.
Housing Beats Crypto On The Priority List
The Senate Banking Committee is shifting focus to housing legislation, following President Donald Trump’s executive order directing his administration to prevent large institutional investors from purchasing single-family homes.
Housing is most Americans’ largest monthly expense and a key contributor to inflation.
With congressional elections approaching this year, Republicans see affordability as a political liability after losing several key races late last year.
The pivot gives financial and crypto industry players more time to lobby for an agreement on legislation that can win wide support—but it also raises questions about whether the Senate’s crypto market structure bill will ultimately succeed.
Why Coinbase Pulled Out
Coinbase withdrew from the process over disagreements on stablecoin reward provisions with the banking industry.
Committee Republicans and the White House want Coinbase and the broader crypto industry to resolve those issues with banks before revisiting the legislation, according to sources familiar with the discussions.
The Banking Committee planned to hold a markup hearing for lawmakers to debate and vote on amendments, but it has now postponed the hearing indefinitely.
Agriculture Committee Moves Forward Anyway
The Senate Agriculture Committee released its own version of the digital-asset legislation Wednesday and plans to hold a markup on January 27.
However, lawmakers released the bill without backing from Democratic Senator Cory Booker, raising concerns it may be a partisan measure that could struggle in the full Senate.
Senate Agriculture Committee Chairman John Boozman acknowledged the issue, saying “differences remain on fundamental policy issues” but adding “it’s time we move this bill.”
The full Senate must vote on a combined measure that merges the Agriculture Committee's proposal with the Banking Committee's bill. Without Democratic support, the legislation faces an uphill battle to secure the 60 votes needed for passage.
What Happens Next
The decision comes one day after President Trump lauded the efforts to pass the bill as a “new pathway for Americans to reach financial freedom.”
Patrick Witt, the White House’s executive director for the President’s council on digital assets, warned industry critics not to let perfect be the enemy of good.
“You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” Witt said on X.
Sources following the process say they won’t be concerned if the Banking Committee passes its version by late March and the full Senate passes legislation by July 4.
That timeline would give the House enough time to pass the bill in September or during the lame duck session after midterm elections.
For crypto markets, the delay removes a near-term catalyst that could have provided regulatory clarity.
Traders betting on a quick legislative win will need to wait at least another six weeks before momentum resumes.
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