SKN | Senate Democrats Plan Fresh Talks With Crypto Industry After Market Structure Bill Delay

Talks resume after abrupt Senate setback

U.S. Senate Democrats are preparing to re-engage with representatives from the cryptocurrency industry on Friday, following a last-minute postponement of a key committee hearing on the long-awaited crypto market structure bill, according to people familiar with the matter.

The planned call is expected to include Democratic lawmakers and staff from both the Senate Banking Committee and the Senate Agriculture Committee, alongside policy organizations representing the crypto sector in Washington. The outreach comes less than 48 hours after the Senate Banking Committee abruptly shelved its scheduled markup of the legislation, halting momentum at a critical stage in negotiations.

A fragile moment for the bill

Wednesday night’s cancellation marked a turning point in a process that had already been under strain. The draft bill faced resistance from several Democrats — and even some Republicans — before the delay, raising doubts about whether the committee had the votes needed to advance the legislation.

Tensions escalated further when Coinbase publicly withdrew its support for the latest draft, a move that insiders said drained political momentum and highlighted unresolved disagreements between lawmakers, banks, and crypto firms. Thursday was described by participants as a pause for reassessment, rather than progress.

Stablecoin rewards at the center of debate

One of the most contentious issues expected to dominate Friday’s discussions is the treatment of stablecoin rewards programs. Negotiators from both parties, along with banking lobbyists and crypto advocates, have been struggling to find common ground on whether platforms should be allowed to offer incentives linked to stablecoin holdings.

Banks argue that such programs resemble interest-bearing deposits and could undermine traditional lending, while crypto firms insist the rewards are fundamentally different from bank interest and are essential to competition and innovation. The unresolved dispute has become a key obstacle to securing bipartisan backing for the broader market structure framework.

Parallel tracks in the Senate

While the Banking Committee has put its markup on hold, the Senate Agriculture Committee remains on track to hold its own hearing on January 27. That committee also claims jurisdiction over parts of the crypto market, particularly derivatives and commodities-style oversight, making its actions closely watched by industry participants.

Democrats involved in Friday’s call are expected to weigh how the two committees’ efforts can be aligned, and whether further concessions or revisions are needed to keep the legislation alive in both panels.

Uncertain path forward

The renewed talks underscore how precarious the bill’s position has become. What was once framed as a rare opportunity for bipartisan progress on crypto regulation is now caught between competing industry interests, internal party skepticism, and an increasingly compressed legislative calendar.

Whether Friday’s call can reset negotiations or merely clarify the depth of remaining divisions will help determine if the market structure bill advances this winter — or joins the growing list of stalled crypto policy efforts in Congress.