The U.S. Senate's major cryptocurrency market structure bill faces a delay of weeks or months as lawmakers shift attention to housing affordability initiatives. This pivot follows Coinbase's withdrawal of support and aligns with the Trump administration's push to restrict institutional investors from buying single-family homes. The change raises questions about the bill's future viability.
The Senate Banking Committee has indefinitely postponed work on its anticipated crypto market structure legislation, which seeks to clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in regulating cryptocurrency. The delay, reported by Bloomberg on January 21, 2026, stems from a redirected focus toward housing affordability, potentially pushing consideration to late February or March.
This shift coincides with the Trump administration's efforts to prohibit large institutional investors from purchasing single-family homes, with lawmakers exploring supportive legislation. However, Bloomberg notes that such investors hold only a small portion of the nation's single-family homes, leaving the potential impact on housing costs uncertain.
The bill's progress stalled last week after Coinbase, a leading crypto exchange, withdrew its support ahead of a scheduled markup hearing. CEO Brian Armstrong's decision highlighted industry concerns, including provisions that could weaken CFTC authority, restrict decentralized finance (DeFi), and limit stablecoin rewards—features seen as vital for innovation.
Traditional banks have lobbied for stricter rules on yield-bearing crypto products, arguing they compete with regulated interest accounts and could destabilize lending. This tension, along with broader policy disputes, has complicated bipartisan efforts.
Meanwhile, the Senate Agriculture Committee released its own digital asset draft, set for markup on January 27, 2026, though without the backing of Sen. Cory Booker (D-N.J.), signaling potential challenges. "While differences remain on fundamental policy issues, this bill builds on our bipartisan discussion draft while incorporating input from stakeholders and represents months of work," said Chairman John Boozman.
Patrick Witt, executive director of the White House council on digital assets, emphasized that regulatory clarity is "a question of when, not if," but warned that without industry cooperation, future versions may be less favorable to crypto firms. The interruption underscores the fragile consensus on digital asset regulation amid competing legislative priorities ahead of midterm elections.
