The Senate’s push to set new rules for digital assets has hit a pause, with lawmakers redirecting attention to housing policy and Coinbase withdrawing its backing for the legislation.
According to reports by Bloomberg and CoinDesk, the Senate Banking Committee will not return to the crypto bill immediately after postponing a planned markup hearing last week.
The delay followed a public withdrawal of support by Coinbase, one of the crypto industry’s most influential lobbyists, over concerns related to stablecoin rewards and decentralized platforms.
Bloomberg first reported earlier this week that the committee was unlikely to resume work on the legislation in the near term.
The delay follows earlier setbacks, with two key committees having postponed scheduled markups to build broader bipartisan support.
Banking Committee pauses amid industry disputes
Two individuals familiar with the discussions told CoinDesk that committee Republicans and the White House want Coinbase and the broader crypto industry to resolve disagreements with the banking sector over stablecoin reward provisions before lawmakers revisit the bill.
As a result, the markup — a formal session where senators debate and vote on amendments — has been postponed indefinitely.
The legislation is designed to define how the Securities and Exchange Commission and the Commodity Futures Trading Commission would oversee crypto markets.
However, the loss of Coinbase’s support has complicated efforts to advance the bill with sufficient industry backing.
One person tracking the process said the delay would not be concerning if the Banking Committee advanced its version of the bill by Memorial Day in late March, with a full Senate vote around July 4.
Under that timeline, the House of Representatives would still have time to act in September or during the lame-duck session following the midterm elections.
Shift to housing and Trump’s affordability agenda
The Banking Committee’s pause on crypto coincides with a broader shift in priorities.
Bloomberg reported that the panel is expected to focus on housing policy following President Donald Trump’s recent push to reduce housing costs.
On Tuesday, Trump signed an executive order barring Wall Street investors from buying single-family homes, a move widely seen as part of the administration’s effort to address affordability concerns ahead of the November midterm elections.
Bloomberg said the committee may prioritize implementing the executive order, delaying crypto legislation until late February or March.
The cost of living has emerged as a top voter concern, even as the Trump administration has made crypto policy a first-year priority.
Agriculture committee moves ahead, bipartisan tensions remain
While the Banking Committee slows its work, the Senate Agriculture Committee released its own version of the crypto market structure bill on Wednesday and scheduled a markup for next week.
However, industry insiders told CoinDesk they fear the bill lacks Democratic support.
Agriculture Committee Chairman John Boozman appeared to acknowledge those concerns, saying, “Although it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better. It’s time we move this bill, and I look forward to the markup next week.”
Boozman added that “differences remain on fundamental policy issues,” despite input from stakeholders and bipartisan discussions.
White House crypto advisor Patrick Witt criticized industry opposition to the current draft, writing on X that “it’s a question of when, not if,” a crypto market structure bill passes. “You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” he said, urging compromise to secure 60 Senate votes.
Even if the Agriculture Committee advances its bill, both Democratic support and alignment with the Banking Committee will be required for the legislation to progress through the Senate.
Republicans are pushing for policy wins ahead of the November midterm elections, while Polymarket odds show Democrats having a 80% chance of winning a House majority, which could derail Trump’s agenda, according to Bloomberg.
The Trump administration has prioritized digital asset policy in its first year, but rising living costs have made affordability a top voter concern.
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