U.S. lawmakers and the White House crypto czar are experiencing a rare alignment of the planets, signaling that crypto market structure legislation is 'closer than ever.' Senate Banking Committee Chairman Tim Scott is spearheading these bipartisan negotiations, with Senator Cynthia Lummis adding that the industry is 'closer than ever to giving the digital asset industry the clarity it deserves.' The White House's David Sacks echoed this sentiment, calling the bill's passage 'as close as it’s ever been' and practically begging the industry to use this momentary ceasefire to stop fighting amongst themselves.
However, that unity shattered so spectacularly it resembled a uniswap rug pull. Coinbase CEO Brian Armstrong dropped a bombshell, declaring the industry would rather have 'no bill than a bad bill' and effectively withdrawing support for the draft legislation he claims is 'materially worse than the current status quo.' Armstrong’s beef centers on provisions he argues would create a 'de facto ban' on tokenized equities, kneecap DeFi, and give the government 'unlimited access' to private financial data like a paranoid NSA intern on a caffeine bender. Critics, including the notorious Citron Research, have accused Coinbase of playing 4D chess, opposing the bill not because it’s trash, but because it might actually benefit competitors like Securitize.
The fallout was immediate and brutal, like a flash crash on low liquidity. The Senate Banking Committee promptly postponed its planned markup of the bill, citing the need for more industry buy-in. The Senate Agriculture Committee also pushed its markup to late January. This legislative whiplash sent the Crypto Fear & Greed Index plunging 12 points to a 'neutral' 49, evaporating a multi-month high that existed just twenty-four hours prior. Bitcoin, which had surged a glorious 5% to $97,870 on Thursday, cooled its heels to around $95,480 as the market digested this Washington soap opera.
Insiders note the draft is a massive, 200-page beast that has undergone significant last-minute surgery, with contentious issues surrounding stablecoin rewards, DeFi privacy, and Treasury jurisdiction. While some, like venture capitalist Kyle Chasse, view the delay as a 'BULLISH signal' for the long game, the immediate sentiment reflects a market that prefers clarity over congressional chaos. With the bill now delayed until at least late January, the 'closer than ever' claims are facing a harsh reality check, leaving the industry and the market to wonder if this political theater will ever end.
