Bloomberg: Crypto Market Structure Bill Hearing May Be Delayed Until Late February, Trump Calls from Davos "Let Me Sign It Quickly"

The US Cryptocurrency Market Structure Act may be delayed until the end of February due to prioritization of housing legislation and Coinbase withdrawing support. Trump called for swift signing at the Davos Forum, while the Agriculture Committee plans to push forward with its own version first.

Bloomberg Reports: Cryptocurrency Market Structure Act May Be Delayed Until End of February

According to Bloomberg, sources familiar with the matter revealed that the Senate Banking Committee’s Cryptocurrency Market Structure Bill (Clarity Bill) will be postponed for review, primarily because lawmakers are shifting focus to potential housing legislation to support President Trump’s affordability initiative.

Sources indicate that the committee may further delay the bill’s review until late February or March this year.

Coinbase Withdraws Support, Industry Seeks Lobbying Space

The review of the Senate Banking Committee’s version of the crypto legislation suddenly halted last week after Coinbase, the cryptocurrency exchange, withdrew support. The delay may give more time for financial and crypto industry participants to lobby and reach broad consensus.

• Reason for Coinbase’s support withdrawal: CEO cites four major flaws: invasion of privacy, stifling innovation

Due to Coinbase’s sudden withdrawal, there were even reports of high-level White House anger.

However, Coinbase CEO quickly clarified on social media, emphasizing that communication channels with the White House remain open and describing the White House’s attitude as very constructive.

Additionally, senior senators like Mark Warner remain optimistic about the bill’s progress, believing that although all parties need time to digest the current situation, there is still room to advance the bill.

Trump Calls for Quick Signing at Davos

Although stakeholders still have disagreements over the bill’s details, Trump is eager to see it signed.

According to The Block, Trump stated during his speech at the World Economic Forum in Davos that the US Congress is working on legislation to structure the crypto market, covering areas like Bitcoin, and he hopes to sign the bill as soon as possible.

One of the most controversial issues in the bill is the conflict between banks and the crypto industry regarding stablecoin reward handling. The banking sector strongly criticizes the stablecoin legislation passed through the GENIUS Act, which prohibits issuers from paying interest directly to stablecoin holders but does not ban third-party platforms like Coinbase from offering rewards.

Image source: Face the Nation YouTube Trump speaking at the World Economic Forum in Davos

Agriculture Committee Releases Draft of Its Own Version, Hearing Scheduled for Next Week

As progress stalls in the Senate Banking Committee, the Senate Agriculture Committee has taken new action.

According to CoinDesk, the Agriculture Committee has released its own draft of the Cryptocurrency Market Structure Bill and plans to hold a hearing next Tuesday. Compared to the Banking Committee’s version, which was delayed at the last minute due to significant controversy, the Agriculture Committee aims to push its version forward.

The purpose of the crypto market structure legislation is to define how US federal regulators will oversee the industry. The Agriculture Committee may vote on its version on January 27, but this version will ultimately need to be merged with the measures under review by the Banking Committee before it can be voted on in the full Senate.