Delays give firms more lobbying time, but experts warn waiting risks stricter rules from future administrations.
The “Crypto Capital of the World” has been put on hold for the “Main Street.” The U.S. crypto market structure bill faces yet another delay as the Senate Banking Committee now shifts attention to housing legislation, potentially pushing consideration to late February or March.
According to people familiar with the matter, the committee’s current focus is on affordability measures and has taken precedence over digital-asset regulation. Earlier this week, President Donald Trump signed an executive order instructing federal agencies to set thresholds for institutional buyers to purchase single-family homes and prevent government-backed support for such purchases.
Senate leaders are focused on stopping such big investors, even though these investors own less than 1% of homes. The crypto bill, which was supposed to move forward quickly, is therefore now on hold, leaving the industry unsure about what comes next.
The crypto bill had already faced delays after Coinbase CEO Brian Armstrong withdrew support, citing concerns over provisions affecting stablecoin rewards and tokenized equities. The legislation seeks to divide oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with the SEC maintaining control over securities-linked tokens.
Industry groups argue the bill would preserve U.S. innovation and offer regulatory clarity. However, critics warn it could reduce yields, increase surveillance, and pressure decentralized finance (DeFi) protocols.
Besides regulatory hurdles, lawmakers also face partisan tension. Senate Agriculture Chair John Boozman unveiled a new GOP-only draft, which lacks Democratic backing, including from Sen. Cory Booker (D-N.J.). The draft could pave the way for a partisan markup, dividing oversight of digital assets between regulators.
Boozman said the bill incorporates stakeholder input while advancing consumer protections and granting new authority to the CFTC. Booker’s office confirmed he continues negotiating in good faith to achieve bipartisan support.
In line with this, President Trump reiterated his support for crypto legislation during the World Economic Forum in Davos. He framed digital assets as vital for U.S. financial leadership and economic competition with China. “To unleash innovation and savings and financing, I’m also working to ensure America remains the crypto capital of the world,” he said.
Trump emphasized prior steps, such as the GENIUS Act on stablecoins, as foundational for broader market structure rules. His comments coincided with Bitcoin surpassing $90,000 earlier this week; it is currently trading at $89,852 as per CoinMarketCap data, reflecting optimism about regulatory clarity boosting market legitimacy.
Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, has also stressed the urgency for passing a bill. “There will be a crypto market structure bill — it’s a question of when, not if,” Witt wrote. He warned that delays could allow future administrations to impose harsher rules. Witt highlighted that acting under a pro-crypto administration offers a rare window to shape favorable legislation.
