Senate Banking Committee postpones hearing after exchange withdraws support

WASHINGTON | January 15, 2026 — Efforts to advance comprehensive U.S. crypto market legislation were set back on Wednesday after Coinbase withdrew its support for a proposed digital asset bill, prompting Senate lawmakers to delay a scheduled Banking Committee hearing.

The delay reintroduced regulatory uncertainty into global crypto markets, where participants had been watching Washington closely for signals on the direction of U.S. policy. Bitcoin and Ethereum prices traded unevenly during the U.S. session, while trading activity moderated across major venues.

The legislation, known as the Digital Asset Market Clarity Act, seeks to define regulatory oversight for crypto trading platforms, issuers, and custodians. The hearing had been expected to test whether the bill had sufficient industry and political backing to advance.

Coinbase, the largest publicly listed crypto exchange in the United States, said it could not support the bill in its current form. Congressional aides familiar with the process said the company’s position contributed to the decision to postpone the hearing.

Market participants said the delay mattered because U.S. legislative progress remains a key reference point for institutional participation. Regulatory uncertainty has historically influenced liquidity conditions and risk appetite across digital asset markets.

Trading desks reported cautious positioning as the news circulated. Spot market volumes eased from earlier levels, while derivatives activity reflected reduced directional conviction, according to traders monitoring flows during the U.S. afternoon.

In Europe, crypto markets tracked U.S. price movements during London hours. Dealers said regulatory developments in Washington continue to shape sentiment among European funds, even where local frameworks are already in place.

Asian markets were similarly subdued. Traders in Singapore and Hong Kong said the Senate delay reinforced a view that global regulatory alignment remains uneven, complicating cross-border investment strategies.

Lawmakers involved in the process said the hearing would be rescheduled at a later date. No revised timetable was provided, and staffers indicated that further discussions with industry participants were likely.

The episode highlighted the role large market participants continue to play in shaping the U.S. regulatory debate. Industry sources noted that broad exchange support is often seen as critical for advancing complex market-structure legislation.

For institutional investors, the pause added another layer of uncertainty. Funds active in digital assets have increasingly tied exposure decisions to regulatory developments in major jurisdictions.

Analysts in New York said the delay was unlikely to trigger immediate dislocation but could keep volatility elevated around future policy headlines.

In London, derivatives desks described demand for hedging as steady but orderly. There were no indications of funding pressure or liquidity shortages, according to traders.

Outside the United States, regulators in Europe and Asia continued to monitor developments. Officials in those regions have previously said U.S. policy direction can influence global standards for digital asset markets.

By the close of U.S. trading, major crypto prices were little changed, reflecting a market that had absorbed the news while awaiting further clarity on the legislative path ahead.

Disclaimer: Crypto assets are volatile and involve risk.
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Global Markets Desk | DECODE THE CRYPTO
covers global crypto markets, regulation, and institutional trends.