Crypto Industry and Senate Democrats Resume Talks After Market Structure Bill Delay

Representatives from the U.S. crypto industry are set to resume discussions with Senate Democrats on Friday, signaling renewed momentum after the abrupt postponement of a key committee hearing on crypto market structure legislation. According to sources familiar with the matter, the call is scheduled less than two days after the Senate Banking Committee unexpectedly delayed its planned markup of the bill, a move that underscored the fragile state of negotiations in Washington.

The delay followed a late-night cancellation on Wednesday, which marked a significant setback for the legislation. U.S.-based crypto exchange Coinbase withdrew its support for the draft bill, a decision that significantly weakened industry backing and shifted the political dynamics around the proposal. Even before Coinbase’s exit, several Democrats, along with a handful of Republicans, were reportedly uneasy with the bill’s language, raising doubts about whether it could successfully advance through committee.

Thursday was largely seen as a pause for reassessment, as lawmakers and stakeholders evaluated their positions. The upcoming Friday call is expected to include Democrats from both the Senate Banking Committee and the Senate Agriculture Committee, along with key crypto advocacy groups that regularly engage with policymakers on digital asset regulation. Their participation suggests a broader attempt to revive negotiations and find common ground on contentious issues.

One of the central topics likely to dominate the conversation is the proposed treatment of stablecoin rewards programs. These programs have become a sticking point, as lawmakers, bank lobbyists, and crypto representatives struggle to balance consumer protection, financial stability, and innovation in the rapidly evolving crypto market. Reaching a compromise on this issue could be critical to restoring bipartisan support for the legislation.

While the Senate Banking Committee has postponed its markup indefinitely, the Senate Agriculture Committee is still expected to move forward with its own hearing on January 27. That hearing could keep the broader crypto market structure debate alive, even as negotiations continue behind the scenes. For the crypto industry, the renewed talks represent a crucial opportunity to influence U.S. digital asset regulation at a pivotal moment.