A compliant platform opposes the U.S. Cryptocurrency Market Structure Act; what is the industry's future direction?

Source: PortaldoBitcoin Original Title: Coinbase Opposes Cryptocurrency Legislation in the US; What to Expect Now? Original Link: Less than a day after, a compliance platform dramatically withdrew support for the US Senate Cryptocurrency Market Structure Bill, preventing the bill from proceeding to a full Senate vote. Since then, the cryptocurrency industry has faced a crisis and is contemplating whether this long-awaited legislation still has any chance of approval.

The CEO of a compliance platform announced on Wednesday that his company would no longer support the bill in its current form, less than 24 hours before the Senate Banking Committee vote. After a chaotic night, pro-cryptocurrency senators chose to postpone the vote, with no new date set yet.

“Some reactions in the industry today show they are not prepared at all. While I am deeply disappointed, I am committed to seriously considering this feedback and working with the industry to deliver a product that can help them thrive,” said one of the main designers of the bill, Senator Cynthia Lummis, on Wednesday evening.

Cryptocurrency policy leaders mobilized on Thursday to express support for the bill and try to minimize the damage caused by some people’s perception that a compliance platform’s sudden stance change jeopardized its chances of approval.

“They are isolated here,” said a cryptocurrency policy expert.

Cody, CEO of a nonprofit Digital Chamber, stated in a Thursday release: “Doing nothing is unacceptable. We cannot give up negotiations at this critical moment.”

Complaints from a compliance platform

If a compliance platform is isolated, it is indeed on a rather strong island. The company is one of the most powerful forces in the US cryptocurrency industry in Washington, forcing the Senate Banking Committee to delay a vote that had bipartisan support and backing from the White House.

The last-minute opposition by the compliance platform to the bill may revolve around ongoing battles between crypto companies and banking lobbies over stablecoin yields—seems like the platform feels it is starting to lose ground in this fight.

The banking industry has strongly pushed to include a clause in the Market Structure Bill that limits the ability of crypto companies to offer yields on stablecoins, essentially rewards similar to interest.

Stablecoins are cryptocurrencies usually pegged to the US dollar, and they were officially legalized in the US this July.

On Tuesday, the compliance platform expressed willingness to accept the latest wording of the bill on this matter. But by Wednesday, it appeared that a bipartisan amendment supported by banking lobbies might be included, making the language around stablecoin yields more restrictive.

“The compliance platform set a bottom line and made a decision,” said a prominent crypto industry lobbyist.

The CEO of the compliance platform appeared on Capitol Hill on Thursday, seemingly indicating that the company was ready to return to negotiations. However, some believe that the damage caused by the company’s stance in the bill negotiations will be difficult to repair.

“Members of Congress do not like being deceived, nor do they like wasting time,” said a Washington insider. “Maybe he still has one more chance, but he has already burned a lot of political capital and credibility.”

Cracks have already begun to appear in the delicate coalition needed to pass the bill. On Thursday, a key White House crypto advisor accused pro-cryptocurrency Democrats of acting with “malice,” and their votes are crucial for the bill’s approval. He described the delay in voting as “disappointing.”

While the compliance platform is engaged in bill negotiations, its leadership has also been emphasizing its influence over a vast super PAC network—over $116 million has been accumulated for the 2026 midterm elections.

But even supporters of this move seem divided on the compliance platform’s attitude toward the Market Structure Bill. Major industry super PACs are mainly funded by the compliance platform, a well-known venture capital firm, and a blockchain company.

On Thursday, a senior executive from a prominent venture capital firm stated that although the bill is “not perfect,” it needs to be approved—directly responding to the compliance platform CEO’s statement on Wednesday that “no bill” is better than a “bad bill.”

Yesterday, at an elegant investor gathering in St. Moritz, Switzerland, the CEO of a blockchain company said he was not informed in advance of the compliance platform’s opposition to the bill.

“I’m surprised by their strong opposition, saying ‘Look, we can’t support this,’” he said about the compliance platform. “Other parts of the industry continue to support the bill, and I believe they are trying to find constructive solutions.”

What to Expect Now?

The next step for the Market Structure Bill may be a vote scheduled by the Senate Agriculture Committee, which is handling the legislative parts under the jurisdiction of the Commodity Futures Trading Commission.

However, the Senate Banking Committee, which oversees the SEC, has been pushing for legislation—sources on Capitol Hill say they wouldn’t be surprised if the scheduled vote by the Agriculture Committee on January 27 is also postponed, pending the Senate Banking Committee’s next steps.

A crypto policy leader was skeptical about the chances of the bill passing before the compliance platform’s unexpected move, seeing no way this action would increase the likelihood of approval.

“I still don’t know what lies ahead,” he said.