A long-awaited Senate Banking Committee hearing on cryptocurrency market structure will not take place in April, pushing back action on a federal digital asset bill and extending regulatory uncertainty for the fast-growing sector.
Hearing slips to May at the earliest
Sen. Thom Tillis of North Carolina, a lead Republican negotiator, has signaled that the committee is unlikely to meet this month to amend or vote on the legislation. He has urged Committee Chair Tim Scott of South Carolina to schedule a markup in May, but no date has been set, according to people familiar with the talks.
The delay comes despite earlier comments from Sen. Cynthia Lummis of Wyoming, who said the panel hoped to vote on the bill in April, and Sen. Bernie Moreno of Ohio, who warned in March that if the measure did not advance by May, it would likely stall for the rest of the year.
Scott and Sen. Angela Alsobrooks of Maryland, a key Democratic negotiator, have not responded to questions about the timeline.
Stablecoin rewards debate at the center of the impasse
The core dispute blocking progress is how to handle returns on stablecoins, a market that surpassed $318 billion in capitalization in early 2026.
Tillis and Alsobrooks have been trying to bridge divisions over whether and how users should be allowed to earn rewards on stablecoin holdings:
- Banking groups argue that allowing such returns could pull deposits out of traditional banks.
- Crypto industry groups counter that strict limits could restrict product development and innovation.
Draft language now under discussion would:
- Ban rewards on idle stablecoin balances.
- Allow yield that is generated by transactional activity, such as payment flows or settlement processes.
According to a person familiar with negotiations, changes to this draft text appear unlikely in the current phase of talks.
Pressure from banks and digital asset groups
Trade associations representing banks have circulated their concerns to members of the Senate Banking Committee following recent edits to the bill. They warn that high-yield stablecoin products could compete directly with deposits and other bank offerings.
At the same time, digital asset advocates are intensifying their push for action. On Monday, Cody Carbone of The Digital Chamber sent a letter urging Scott and Sen. Elizabeth Warren of Massachusetts to move the digital asset market structure bill to markup “as soon as possible.” The letter cited the need for clear rules for more than 70 million Americans using digital assets.
Bill would clarify regulatory turf for CFTC and SEC
The legislation, which passed the House nearly a year ago and previously advanced through the Senate Agriculture Committee along party lines, is designed to:
- Divide jurisdiction between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
- Establish asset classifications for digital tokens.
- Create new disclosure and reporting standards.
The Senate version must still be reconciled with the Agriculture Committee’s earlier bill before it can reach the floor.
Unresolved issues include protections for software developers in decentralized finance and internal alignment within the Republican caucus on the final structure of the framework.
Growing user base faces prolonged uncertainty
The postponement into May at the earliest extends a period in which federal policy for digital assets is shaped largely by regulatory actions and court decisions rather than statute.
Roughly 30% of American adults — more than 70 million people — now own digital assets, up from 27% in 2024. For traders and firms active in the market, the absence of a predictable federal framework means that:
- Market direction can shift abruptly on the basis of agency announcements or enforcement actions.
- Administrative rulings and judicial outcomes remain major drivers of volatility.
- The final wording on stablecoin rewards could directly affect the design and competitiveness of key products.
Some recent joint guidance from the CFTC and SEC has provided limited clarity on asset classification, but market participants continue to look to Congress for a comprehensive framework.
Committee shifts focus to Fed nomination
While the crypto bill remains on hold, the Senate Banking Committee is turning to other business. This week, it will hold a Tuesday hearing on the nomination of Kevin Warsh to serve as Chair of the Federal Reserve.
Any public statements from Scott, Alsobrooks, or other committee leaders in the coming weeks will be closely watched as signals of whether the digital asset bill can still advance before Moreno’s informal May deadline — or whether comprehensive federal market structure rules will be pushed off yet again.
For deeper context on regulation and crypto’s future, explore our guide on US crypto regulation today.
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