Sweeping crypto legislation hits major snag as Senate Banking Committee postpones markup

The Senate Banking Committee has pulled its hearing to amend and vote on sweeping crypto legislation following Coinbase’s move to pull its support. It remains unclear when the hearing will take place.

The Senate Banking Committee was slated to hold its markup hearing on Thursday morning. The bill seeks to clarify regulatory jurisdiction between the Commodity Futures Trading Commission and the Securities and Exchange Commission, define when digital assets qualify as securities or commodities, and establish new disclosure requirements.

“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” said Senate Banking Committee Chair Tim Scott, in a statement on Wednesday night. “This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement. The goal is to deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.”

Bill text was released on Monday night, with amendments to the bill due Tuesday night, setting it up for a vote on Thursday.

But support began to splinter on Wednesday.

A key negotiator on the bill, Democratic Sen. Ruben Gallego, told reporters that he was supposed to meet with the executive director of the President’s Council of Advisors for Digital Assets, Patrick Witt, but that he was a no-show. He told reporters that he could not vote for the bill at this point.

Then, Coinbase pulled its support. In a post on X, Coinbase CEO Brian Armstrong cited concerns over the treatment of stablecoin yield, tokenized equities, and DeFi. Other crypto firms and advocacy groups voiced support for the bill, saying that they remained committed to getting a bill passed into law in 2026.

It’s unclear where the Senate Banking Committee’s bill goes from here. The Senate Agriculture Committee has a hearing slated for the end of January. Both committee bills would need to be married together before heading to a full Senate vote. The House’s version would still need to be addressed before one final version heads to President Donald Trump’s desk to be signed into law.