The Crypto Market Structure Bill Postponed Amid Mounting Criticism
The U.S. crypto market remains abuzz as the controversial crypto market structure bill faces delays. Initially hailed as a step toward regulatory clarity, the bill has drawn heavy criticism from industry leaders and policymakers alike. What seemed like a solution to crypto’s regulatory ambiguity now poses more questions than answers.
What the Crypto Market Structure Bill Aims to Address
The proposed legislation aims to classify digital assets, define the roles of regulatory agencies, and establish guidelines for the products and services that crypto companies can offer. Importantly, it seeks to prioritize consumer protection within the growing digital asset ecosystem. However, the bill has failed to garner broad support, contrasting with earlier legislation like the GENIUS Act, which introduced stablecoin frameworks and received widespread acclaim.
Key Industry Concerns
Hunter Horsley, CEO of Bitwise Asset Management, outlined significant gaps in the bill during a CNBC interview. Provisions banning stablecoin rewards and imposing restrictions on asset tokenization are seen as obstacles for both crypto-native and traditional financial institutions.
“Large institutions, including some of the biggest asset managers, banks, and wealth management firms, are eager for clear rules around tokenizing securities and other assets,” said Horsley. This sentiment is echoed as financial giants increasingly look to enter the crypto space alongside their traditional portfolios.
Coinbase’s Take: No Bill is Better Than a Bad Bill
Brian Armstrong, CEO of Coinbase, has been vocal about the legislation’s shortcomings. Speaking to CNBC, Armstrong warned against allowing banks to use the bill to limit competition, citing how this could deprive Americans of emerging financial opportunities. He hinted at the benefits of stablecoins, which could yield up to 3.8% in rewards compared to traditional banks’ meager 0.14% interest rates on savings.
Coinbase remains open to working with lawmakers but has withdrawn its support for the current draft, emphasizing that better-aligned regulation is crucial for innovation and consumer protection.
Growing Criticism Bolstered by Fraud Concerns
Opposition to the bill has intensified, supported by alarming fraud statistics. According to blockchain analytics firm Chainalysis, a staggering $14 billion in crypto was lost to fraud in 2025 alone. These concerns have fueled resistance, with groups like the American Federation of Teachers warning that the legislation could put millions of workers’ pensions at risk due to crypto’s inherent volatility.
Future Outlook: Charting a Path Forward
Despite strong opposition, dialogue with policymakers remains active. Senate Banking Committee Chair Tim Scott noted that discussions are ongoing, stressing collaboration among stakeholders. Industry leaders, like Horsley, believe innovation within the crypto space will persist regardless of the bill’s final form.
Crypto isn’t at a “make or break” point just yet. Instead, the focus should remain on building a framework that protects consumers, encourages innovation, and provides much-needed clarity for both traditional investors and crypto startups.
Enhance Your Financial Knowledge
Want to explore opportunities to grow your financial literacy and make informed investments? Consider reading The Intelligent Investor by Benjamin Graham, a classic guide on investment strategies. By understanding traditional investing frameworks, you can better navigate new-age financial tools like crypto.
