A major U.S. crypto policy effort has entered a new phase of uncertainty. On Jan. 14, the Senate Banking Committee said it would postpone markup of its digital asset market structure legislation while bipartisan negotiations continue behind the scenes. Committee Chairman Tim Scott said he has been in contact with leaders across the crypto industry, the broader financial sector, and both political parties, adding that participants remain engaged in good-faith discussions.
Markup postponed as negotiations continue
According to Scott, the bill is the product of months of bipartisan work and includes input from innovators, investors, and law enforcement. The stated aim is to create clearer rules for digital asset markets while reinforcing consumer protections, addressing national security concerns, and improving regulatory clarity. In that framing, the delay is being presented as an extension of talks rather than a collapse of the legislative process.
Still, opposition to the current framework is growing. Coinbase CEO Brian Armstrong withdrew his support this week, arguing that the draft is “materially worse than the status quo.” He criticized what he described as a de facto ban on tokenized equities and new restrictions on decentralized finance (DeFi), which he said could undermine user privacy.
Criticism rises from both industry and lawmakers
On the Democratic side, Senator Elizabeth Warren has also emerged as a leading critic. She recently warned the U.S. Securities and Exchange Commission that so-called tokenization loopholes could expose 401(k) retirement savers to volatile assets. Armstrong, meanwhile, has pushed back against what he sees as interference from banking lobby interests that could weaken crypto innovation and affect areas such as stablecoin rewards. Warren has taken the opposite view, arguing that the framework could weaken consumer protections and limit the SEC’s ability to police what she calls financial “gambling.”
Committee members are continuing to revise provisions in an effort to reconcile these competing concerns, reduce regulatory fragmentation, and give market participants clearer compliance expectations. Supporters of the bill argue that a durable federal framework could strengthen investor confidence, support responsible innovation, and help ensure the future of finance is built in the United States. For now, however, the delay extends regulatory uncertainty for crypto and fintech investors.