Crypto Market Structure Bill Could Be Back In Play – Washington Is Reportedly Looking To Resume Talks On Friday

According to a CoinDesk report, Senate committees are planning to get back to the discussion table with crypto industry leaders on Friday, following the bill’s delay earlier this week.

• The dispute between the crypto industry and lawmakers stems from the treatment of stablecoin yield in the new draft. 
• With the Senate scheduled to recess next week, February is the most likely window for the next markup for the crypto market structure bill with the Banking Committee.
• The Senate Agriculture Committee remains scheduled to hold its own session on January 27.

Senate Democrats have not closed the door on reviving the stalled crypto market structure bill, with negotiations reportedly set to resume between lawmakers and industry leaders on Friday

According to sources cited by CoinDesk, representatives from both the Senate Banking Committee and the Senate Agriculture Committee are scheduled to hold a call with crypto industry executives on Friday to discuss next steps for the legislation. 

The report said that both sides coming back to the table suggests the bill remains under active consideration, despite recent setbacks

Bitcoin (BTC) fell 1% over the last 24 hours, holding at around $95,500 on Thursday night. Retail sentiment around the apex cryptocurrency remained in ‘bullish’ territory, but chatter dipped to ‘normal’ from ‘high’ levels over the past day. The overall cryptocurrency market followed, down 1% in the last 24 hours and keeping above $3.3 trillion. Market watchers are eyeing the next resistance level of $97,500 to see if Bitcoin’s price can break to $100,000.

Lobbying Fight Intensifies Over Stablecoin Yield

The latest delay follows Coinbase’s (COIN) decision on Wednesday to withdraw support for the new draft shared on Monday, citing unresolved concerns. However, CEO Brian Armstrong, along with others like Galaxy Digital’s (GLXY) Mike Novogratz, signaled they were open to negotiation in comments after the draft’s release.

The dispute between the crypto industry and lawmakers stems from the treatment of stablecoin yield in the new draft. Banking and securities industry lobbyists have been advocating for restrictions on how platforms can offer rewards to users who hold stablecoins. According to them, yield-bearing stablecoins could undermine traditional bank deposits that are the backbone of the current economy.

Meanwhile, on the crypto side, lobbyists are seeking stronger protections for decentralized finance protocols and a clearer demarcation of authority between federal regulators

Will The Crypto Industry See Some Love In February?

The Senate Banking Committee hasn’t closed the door on discussions. It has indicated that it intends to return to the market structure legislation at a future hearing, even though the committee didn’t specify exactly when that would be. 

With the Senate scheduled to recess next week before turning its focus to negotiations over a federal budget deadline on January 30, February is the most likely window for the next markup.

While the Senate Banking Committee postponed its markup, the Senate Agriculture Committee remains scheduled to hold its own session on January 27, keeping at least one legislative track open for the broader CLARITY Act.

Crypto Stocks Recover After Hours

COIN’s stock gained more than 1% in after-hours trade on Thursday after logging a fall of nearly 6.5% in regular hours. Stocktwits data showed retail sentiment around the crypto exchange remained in ‘bullish’ territory amid ‘high’ levels of chatter over the past day.

 One user of the platform said the delay in the crypto bill shows how influential Armstrong is in the industry and its regulation.

Another said that Thursday’s stock price fall was “overblown,” given that COIN didn’t rally when the market was hopeful that the crypto market structure bill would pass.

MSTR’s stock also edged 1% higher in after-hours trade after falling 4.70% during the regular session. Retail sentiment around the Bitcoin proxy remained in ‘extremely bullish’ territory over the past day, accompanied by ‘high’ levels of chatter. 

Semler Scientific (SMLR) and Exodus Movement (EXOD) outperformed other crypto-linked equities, rising 3.20% and 2.08% after hours, respectively.

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