Senate Delays Crypto Market Structure Bill to Secure Bipartisan Support

Senate Delays Crypto Market Structure Bill to Secure Bipa... Senate Agriculture Committee Chairman John Boozman postponed the Digital Asset Market Clarity Act markup to late January, citing unresolved stablecoin yield provisions as banking groups and crypto firms clash over rewards frameworks, while Democratic senators demand more review time ahead of 2026 mi... Senate Agriculture Committee Chairman John Boozman postponed a planned markup of bipartisan crypto legislation to late January, citing the need for additional time to finalize remaining policy details and ensure broad congressional support.The delay follows weekend negotiations with Democratic lead Senator Cory Booker on the Digital Asset Market Clarity Act, which divides regulatory authority between the SEC and CFTC while establishing frameworks for stablecoin yields, DeFi protections, and digital asset classifications.The postponement adds uncertainty to legislation already facing political headwinds as the 2026 midterm elections approach, with some analysts warning passage could slip to 2027 despite strong backing from the Trump administration and newly appointed SEC Chair Paul Atkins, who called this "a big week for crypto" while urging Congress to bring digital asset markets "out of the regulatory gray zone." This is a big week for crypto âEUR" Congress is on the cusp of upgrading our financial markets for the 21st century.I am wholly supportive of Congress providing clarity on the jurisdictional split between the SEC and the @CFTC. pic.twitter.com/NtDWRW85kL- Paul Atkins (@SECPaulSAtkins) January 12, 2026 Banks Challenge Stablecoin Yield Provisions in Final NegotiationsTraditional banking groups intensified lobbying efforts to restrict stablecoin rewards beyond the GENIUS Act's framework, which permits third-party platforms to offer incentives while barring direct interest payments from issuers.The latest Senate Banking Committee draft, released late Monday after what sources described as a "doozy" of a day, prohibits companies from paying interest solely for holding balances but allows rewards tied to account opening, transaction activity, staking, liquidity provision, collateral deposits, or governance participation. NEW: The Senate Banking Committee is aiming to file its latest (still) bipartisan market structure text before midnight after whatâEUR(TM)s been described to me as a âEUR?"doozyâEUR of a day, full of intense heartburn from both sides over stablecoin yield, now emerging as THE thorniest issueâEUR¦- Eleanor Terrett (@EleanorTerrett) January 13, 2026 The American Bankers Association warned in a recent letter that "if billions are displaced from community bank lending, small businesses, farmers, students, and home buyers in towns like ours will suffer," arguing that crypto exchanges cannot replicate FDIC-insured products or fill lending gaps from deposit outflows.As a result, Coinbase threatened to withdraw support if Senate negotiators insert restrictions beyond enhanced disclosure requirements, with Chief Policy Officer Faryar Shirzad contending that "undermining the supremacy of the USD has been a longstanding goal of the PRCâEUR"the Senate banning rewards would be a big assist to China's efforts," noting Beijing announced plans to pay interest on its digital yuan starting January 1, 2026.Stablecoin rewards represent critical revenue for Coinbase, which shares interest income from USDC reserves with Circle Internet Group and offers 3.5% yields on Coinbase One balances, with Bloomberg projecting the exchange's total stablecoin revenue reached $1.3 billion in 2025.Jake Chervinsky of Variant Fund questioned the yield restrictions, stating, "there are a few things left that could blow up the market structure bill, and stablecoin yield is one of them," adding, "what does stablecoin yield have to do with market structure, you ask? Good question! NOTHING. Except the banks have influence and they want their regulatory moat back." There are a few things left that could blow up the market structure bill, and stablecoin yield is one of them.What does stablecoin yield have to do with market structure, you ask? Good question! NOTHING.Except the banks have influence and they want their regulatory moat back. https://t.co/Ruz8RFk1Xj- Jake Chervinsky (@jchervinsky) January 13, 2026 Legislative Timeline Faces Midterm Election PressureThree Democratic senators, Chris Van Hollen, Tina Smith, and Jack Reed, sent a letter to Banking Committee leadership demanding a full hearing before Thursday's markup, criticizing the lack of text "just two days before the markup, calling the timeline inadequate for voting on '...