Headline: Crypto market-structure bill pulled back after industry revolt — talks continue as lawmakers, institutions seek a compromise The long-awaited crypto market-structure bill has been postponed after a wave of criticism from industry participants, institutional players and some policymakers, who say the draft falls short of the clarity the sector needs. Lawmakers had scheduled a vote on the proposal earlier this week, but mounting opposition forced a delay. The legislation was designed to define how digital assets are classified, clarify the roles that regulators would play, and spell out which products and services crypto firms may legally offer — all while emphasizing consumer protection for U.S. citizens. Despite those goals, the draft has failed to win broad support across the ecosystem. Stronger pushback than for prior bills Industry reaction to this draft has been markedly more negative than responses to earlier legislation such as the GENIUS Act, which established a stablecoin framework and drew wide backing. Key objections center on provisions some say would curb innovation — notably restrictions on tokenization and a proposed ban on stablecoin rewards. Hunter Horsley, CEO of Bitwise Asset Management, told CNBC that while regulators have made progress, “major clarity gaps” remain. He warned that specific measures in the bill — including limits on asset tokenization and the ban on rewards — would be highly problematic for firms and their institutional customers. “There are a lot of firms that want to tokenize securities, equities… some of the world’s largest asset managers. They want, if possible, to know clearly what the rules of the road are,” Horsley said, noting that demand now comes not only from crypto natives but from banks, wealth managers and hedge funds. He added that the concerns are complex and driven by many voices, and stressed the bill is not a “make or break” moment for crypto — innovation, he said, will continue. Coinbase withdraws support Coinbase CEO Brian Armstrong echoed the cautionary tone and said the exchange withdrew its support for the current text. “No bill is better than a bad bill,” Armstrong told CNBC, adding that Coinbase remains open to constructive engagement with lawmakers. He warned against using legislation to entrench incumbent banks or “put their thumb on the scale,” which could shut Americans out of new financial opportunities. Armstrong pointed to the consumer benefit argument for stablecoin yields — up to about 3.8% in some cases versus roughly 0.14% (14 basis points) average yield on dollar deposits at traditional banks — and emphasized that many stablecoins are backed by high-quality reserves such as U.S. Treasury bills, whereas banks operate on fractional reserves. Negotiations continue Despite the backlash, lawmakers say talks are ongoing. Senate Banking Committee Chair Tim Scott confirmed discussions are continuing and that “everyone is at the table working in good faith.” Negotiators face competing priorities: protecting consumers and pensions, addressing fraud, and crafting rules that don’t unintentionally block useful innovation or institutional participation. Political and public-safety pressures Opposition has been building for months. In December 2025 the American Federation of Teachers urged the Senate to rethink the legislation, warning it could expose workers’ pensions to “profound risk” because of crypto’s volatility. Fraud and scams are also top of mind: blockchain analytics firm Chainalysis estimates roughly $14 billion was lost to crypto-related fraud in 2025, a statistic that has heightened calls for stronger investor protections. Market reaction Market sentiment reflected the uncertainty. Over the past day the broader crypto market showed volatility, with total market capitalization around $3.23 trillion. What’s next Expect more negotiation and revisions as lawmakers balance industry demands, institutional interests, and consumer-protection concerns. With major players from both the crypto world and traditional finance pushing for clearer rules — and some firmly opposed to elements of the current draft — the final shape of federal crypto regulation remains unsettled. Disclaimer: AMBCrypto’s content is informational and should not be taken as investment advice. Trading, buying or selling cryptocurrencies is high risk; readers should do their own research before making decisions. © 2026 AMBCrypto Read more AI-generated news on: undefined/news

#BTC #ETF