The US Senate Banking Committee cancelled its Thursday markup of a crypto market structure bill. Chairman Tim Scott made the call late Wednesday. He wants more time for bipartisan talks to line up support.
TL;DR
- Senate Banking postpones Thursday crypto bill markup for extra negotiations.
- Tim Scott: Talks with industry, finance folks, and both parties still going strong.
- Bill targets consumer rules, security, and US-based finance setup.
- Senate Ag already delayed its version to late January.
- Coinbase bailed on support recently - says bad bill beats none.
The bill lays out rules for crypto markets think exchanges, stablecoins, custody stuff. It splits duties between the SEC for securities and CFTC for commodities. That's the big split everyone's after.
Right now, crypto firms deal with lawsuits and uncertainty. Take FTX's collapse in 2022 - $8 billion gone, users wrecked. Or Binance's $4 billion fine last year. Clear lines could cut that mess.
Scott pushes for consumer safeguards without killing growth. The market sits at $2.5 trillion today. Rules might pull more cash stateside away from places like Dubai or Singapore.
Recent Twists in the Talks
Coinbase just pulled its backing. They flat out said a weak bill harms more than helps. That stung, especially after months of back and forth. And the Senate Agriculture Committee, they kicked their markup down to late January too. Chairman John Boozman wants details nailed down for wider buy in.
These delays feel familiar. FIT21 passed the House in 2024 with 188 Republicans and 135 Democrats on board. Senate's tougher - needs 60 votes to dodge filibusters. Data backs the rush. Crypto trading volume hit $100 trillion last year, per Chainalysis. Yet US share dropped to 20% from 40% in 2021. Firms eye friendlier spots overseas.
Scott's Angle and Industry View
Tim Scott knows this turf. As a South Carolina Republican, he's long backed crypto. He grilled SEC Chair Gary Gensler in hearings called out overreach. His quote hits home - everyone at the table. That means banks like JPMorgan, crypto giants like Circle, even law enforcement reps. FBI reports show $3.9 billion in crypto crime 2023, down 20% from 2022 peaks thanks to better tracking.
Industry folks nod along. A16z partner says private talks fixed 80% of sticking points. But Democrats worry about money laundering. They point to Tornado Cash sanctions as proof gaps exist.
One aside - remember that time Elon tweeted about Dogecoin and markets flipped? Rules could steady that chaos without banning memes.
Bigger Picture on US Crypto Rules
2025 brought real moves, Stablecoin bill cleared committee, house passed market structure basics. Trump admin whispers of crypto reserves floated around. Yet SEC still sues - Coinbase, Kraken, Binance. $10 billion in penalties since 2021. Firms spend millions on lawyers instead of building. Europe's MiCA rules went live last June. Covers 27 countries, clear token tests. Result, EU crypto firms raised $15 billion in 2025, per Dealroom data and US lags at $8 billion. Canada simplified too, no securities label for most tokens. Their market share doubled. Point is, delays cost. Every month without rules, talent and cash flow out.
Challenges Still Loom
Not all smooth. Democrats like Elizabeth Warren slam crypto as crime enabler. She cites $20 billion in illicit flows since 2017 - though total volume dwarfs that. Industry counters with Chainalysis stats: 0.34% of transactions dirty last year. Banks launder way more - $300 billion annually, per UN estimates.
Closing Statement
Talks stretch on, but Scott's steady hand hints at a deal soon. Pass a solid bill come late January, and US crypto firms stick around - pulling in fresh capital as markets steady. Drag too long, and more head for overseas setups. January's the pivot