Senate delays review of the U.S. cryptocurrency market structure bill

Source: PortaldoBitcoin Original Title: U.S. Senate delays cryptocurrency bill review Original Link: Senate Banking Committee postpones markup of bipartisan crypto market structure bill, adding to previous delays by the Agriculture Committee, as uncertainty around the legislative timeline continues to grow.

Senate Banking Committee Chairman Tim Scott announced on Wednesday evening that he has spoken with representatives from the crypto industry, the financial sector, and bipartisan congressional leaders, reaffirming that negotiations are ongoing as “sincere discussions.”

The bill aims to define regulatory jurisdiction over crypto assets between the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC), and to establish a federal oversight framework for digital asset markets.

If approved, this will be the first comprehensive federal regulation codifying the crypto market structure, replacing reliance on regulatory guidance and litigation. It will also significantly reform compliance obligations for exchanges, stablecoin issuers, and DeFi platforms.

Scott stated that progress so far involves “months of serious bipartisan negotiations and substantive contributions from innovators, investors, and law enforcement.”

He added that these efforts are intended to “provide clear rules to protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.”

The decision by the Banking Committee comes after the Senate Agriculture Committee chose to delay its own review until after the end of January, citing the need for more time to examine the legislation before moving forward.

The bill is under the jurisdiction of both committees because it allocates regulatory authority over the crypto market between the SEC (reporting to the Banking Committee) and the CFTC (supervised by the Agriculture Committee).

The overlapping delays mean that the bill cannot advance until both committees have completed their respective reviews, extending the process beyond the timeline initially indicated by lawmakers.

Nevertheless, the delay could allow “real room to tighten these provisions, as consumer protection depends on due process and narrowly defined, explicitly triggered conditions, rather than broad discretion to disrupt access to funds,” said Jonathan Ingles, CEO of crypto consumer research firm Protocol Theory.

If approved, the bill could also represent a significant push not only for Bitcoin but for the entire crypto market.

Jery Oseya, head of global market insights at crypto asset management firm Hashdex, told media that approval of the bill could be a major breakthrough for altcoins, which face greater scrutiny under the previous SEC leadership.

“In my view, this could be the biggest catalyst for altcoins this year,” Oseya said. “However, I currently give about a 60% chance of approval.”

Industry Dissatisfaction

The delay also follows resistance from the industry, driven by a series of issues.

On Wednesday, a compliance platform withdrew its support for the bill ahead of the expected Senate vote, citing unresolved concerns about how certain parts of the legislation could affect developers and user access.

The platform argued that, as currently worded, the framework creates uncertainty risks around software activity that could undermine the consumer protections lawmakers intend to provide.

Concerns about how the bill might expand oversight and surveillance powers also gained attention.

Earlier this week, Galaxy Research warned that certain provisions of the draft could significantly expand financial monitoring powers, drawing comparisons to the surveillance powers expanded under the Patriot Act after 9/11.

Under the current wording, the 278-page draft “expands actual oversight authority by bringing more crypto user experience elements into scope, especially interfaces that people actually use in daily life,” Ingles said.

“Consumers adopt digital currencies for speed and clarity, so any framework that expands monitoring and control at the access layer will have real consequences for trust,” Ingles claimed.

A notable aspect of the current draft is “moving toward rapid transaction interruption, including warrantless freezes, supported by the responsibility protections for compliant companies,” he said. “For consumers, the harm is the same, whether caused by traditional delays or wrongful blocking.”

According to Ingles, up to 67% of American consumers report delays in access as a “major frustration.”