Crypto Market Structure Bill Reportedly Set Back for Weeks

The American crypto market structure bill, or CLARITY Act, faces delays of several weeks to months as the Senate Banking Committee shifts focus to housing legislation aligned with President Trump’s affordability agenda.

The Committee is likely to postpone further consideration of the crypto regulations, which were already delayed last week, until late February or March, citing anonymous sources. The controversial crypto bill was originally postponed last week after Coinbase withdrew support over stablecoin yields.

The "Yield" Impasse and Banking Lobby Concerns

Key Legislative Roadblocks

Stablecoin Yields: Democrats and banking lobbies fear yield-bearing stablecoins will cause "deposit flight" from traditional banks.
Regulatory Boundaries: The bill aims to define clear lines between the SEC and CFTC, but consensus remains elusive.
Interest Rate Gap: While average savings yields are 0.61%, stablecoin holders can earn up to 5%, creating competitive tension with banks.

Asset	Market Reaction (Post-News)
Bitcoin (BTC)	Recovered from $87,300 to $90,000; later retreated to $89,800
Ethereum (ETH)	Reclaimed $3,000 and holding steady
Total Cap	Inched up to $3.1 trillion

In reaction to the delay, Republican Senator John Boozman released an updated bill that builds on the delayed bipartisan market structure legislation. Meanwhile, broader geopolitical shifts are occurring as Donald Trump announced a potential framework deal with NATO Secretary-General Mark Rutte regarding Greenland, potentially averting tariffs on European allies.

“Not a great sign for the Senate Banking Committee, which was likely hoping for a bipartisan deal to smooth its own markup,” commented Crypto America host Eleanor Terrett.