Senate Banking Committee Chairman Tim Scott (R-S.C.) today delayed a scheduled committee vote on cryptocurrency market structure legislation. The decision to postpone the vote followed intense lobbying by banking groups and crypto advocates over a provision to restrict stablecoin interest payments, as well as other issues.
Congress last year passed the Genius Act, which established a regulatory framework for payment stablecoins. The market structure bill would do the same for a broad range of digital assets. The committee had planned to take up the bill in a markup session on Thursday.
The American Bankers Association has been urging senators to use the bill to close a loophole that could allow crypto firms to bypass the Genius Act’s prohibition on paying interest or yield on payment stablecoins. In addition, bank advocates have sent more than 10,000 letters to Senate offices calling on Congress to expand the prohibition, citing the risks posed to bank deposits and local lending, according to ABA.
Earlier in the day, the CEO of the crypto exchange Coinbase announced the company was dropping its support for the market structure legislation. In a statement, Scott said he has spoken with several stakeholders “and everyone remains at the table working in good faith.”
“This bill reflects months of serious bipartisan negotiations and real input from innovators, investors and law enforcement,” Scott said. “The goal is to deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.”
Scott did not immediately set a date for a new markup session on the bill.
Editor’s note: This story has been updated to correctly state that the letters to Congress were sent by banking advocates.
