Senate Delays Crypto Market Structure Bill as Housing Takes Priority

This article was first published on The Bit Journal.

Crypto policy was supposed to be on the Senate’s near-term agenda. Instead, housing affordability has taken the spotlight, pushing a major crypto market structure bill into late February or March, according to a report citing people familiar with the schedule.

The move highlights a simple reality in Washington: rent and mortgage pressure wins airtime when elections get closer. Digital assets may shape the future of finance, but lawmakers know voters feel housing costs every month.

Why the crypto market structure bill is stalled

The legislative detour is tied to an affordability push that includes discussion around limiting institutional activity in the single-family housing market. The report notes that policymakers have explored steps aligned with a recent executive order targeting large investors, even though estimates cited suggest institutions own less than 1% of U.S. single-family homes.

That context matters because it explains the delay. When lawmakers need a headline people understand immediately, housing beats a crypto market structure bill almost every time.

What the bill is meant to fix

The crypto market structure bill aims to settle a fight that has lingered for years: the boundary between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Both agencies have said Congress needs to clarify who has authority over what, especially for trading platforms and the classification of certain assets.

For markets, that uncertainty shows up as risk premiums. It can shape what exchanges list, how tokens launch, and whether investors treat regulatory headlines as a price trigger.

Coinbase withdrawal adds pressure

Progress slowed further after Coinbase pulled support for the latest crypto market structure bill draft. Coinbase chief executive Brian Armstrong criticized the text as having “too many giveaways to tradfi,” arguing it tilted the playing field toward legacy finance.

Armstrong has also framed the setback as temporary. Speaking from Davos, he said he is pushing for a “level playing field” between banks and crypto firms while negotiations continue.

Another committee keeps moving

While one panel pauses, the Senate Agriculture Committee is still advancing its own version of digital-asset legislation and could vote as soon as Jan. 27. The competing drafts may eventually be merged, but each revision phase adds new bargaining, and the crypto market structure bill can change quickly in that environment.

The Hoskinson vs Garlinghouse split

The policy delay has spilled into a public disagreement between major industry leaders. Ripple chief executive Brad Garlinghouse has praised “workable frameworks,” arguing that “clarity beats chaos” and that lawmakers can refine details during markup.

Cardano founder Charles Hoskinson has rejected that approach, warning that “good enough” rules can become permanent and leave decentralized finance boxed into rules built for banks.

Conclusion

For now, the crypto market structure bill is waiting behind a housing-focused agenda, and the industry is arguing over whether compromise is progress or surrender. The next decisive moment will come when the Senate returns to markup discussions and the final wording reveals who the framework truly serves. Markets will be watching that calendar closely.

Frequently Asked Questions (FAQs)

What is a crypto market structure bill?
A proposal that sets U.S. oversight rules for crypto assets, trading venues, and regulators.

Why is the bill delayed?
Lawmakers shifted attention to housing affordability, pushing the crypto market structure bill to late February or March.

Why did Coinbase push back?
Brian Armstrong said the draft had “too many giveaways to tradfi” and could restrict core crypto activity.

Glossary of Key Terms

SEC: U.S. regulator for securities markets and investor protection.
CFTC: U.S. regulator for commodity derivatives and futures.
Markup: The committee stage where lawmakers revise bill language before voting.
DeFi: Blockchain-based finance that runs without traditional intermediaries.

References

cryptonews

Read More: Senate Delays Crypto Market Structure Bill as Housing Takes Priority">Senate Delays Crypto Market Structure Bill as Housing Takes Priority