Crypto Bill Delay: Coinbase Pulls Support, Senate Cancels Vote

The U.S. Senate has cancelled a vote on a major crypto market structure bill. The decision came after Coinbase withdrew its support, raising concerns about parts of the legislation.

The bill, called the Digital Asset Market Clarity Act, aimed to clarify which agencies regulate digital assets. It focused on dividing responsibilities between the SEC and CFTC.

Coinbase Objects to Key Provisions

Coinbase CEO Brian Armstrong said the company pulled support because some rules could harm the crypto market. He highlighted provisions that would effectively ban tokenized equities and limit rewards for stablecoins.

“We’d rather have no bill than a bad bill,” Armstrong said in a public statement. The withdrawal of support forced the Senate Banking Committee to delay the markup vote, originally scheduled for January 14, 2026.

Potential Impact on Crypto Innovation

The cancellation of the vote is a setback for lawmakers, but some analysts see a silver lining for the crypto industry. Flawed rules could have stifled innovation and limited competition.

By the crypto bill delay, the industry gets more time to lobby for balanced regulations. Experts suggest that a revised bill could protect investors while allowing crypto companies to grow.

Industry Crypto Reactions

Sources like CoinDesk and Bloomberg confirmed the delay and reported broad industry pushback. Some investors reacted positively, viewing the setback as potentially bullish for the market.

Lawmakers now face pressure to craft legislation that addresses concerns without harming growth. Banks and Democrats continue to lobby for rules that balance oversight with innovation.

Implications of the Crypto Bill Delay

The crypto market remains watchful as lawmakers revise the bill. Analysts say that clear, fair rules could make confidence in digital assets stronger.

Meanwhile, companies like Coinbase are pushing for protections that do not restrict access or limit new technology. The delay buys time for lawmakers and the industry to reach common ground.

While the crypto bill delay is underway, the pause highlights the complex balance between regulation and innovation in the fast-growing crypto sector.