The much-debated U.S. crypto market structure bill, known as the CLARITY Act, has been postponed due to disagreements among key policymakers. The delays could extend for several weeks as the Senate Banking Committee is currently prioritizing housing legislation in line with President Trump’s affordability initiatives, according to a report by Bloomberg.

The Senate Banking Committee is expected to defer discussions on the crypto regulations, which had already been postponed last week, to late February or March. This troubling news comes after Coinbase withdrew its backing over concerns regarding stablecoin yields.

“Not a great sign for the Senate Banking Committee, which was likely hoping for a bipartisan deal to smooth its own markup,” commented Crypto America host Eleanor Terrett.

No Consensus on Crypto Legislation

The proposed legislation aims to clarify regulatory roles between the SEC and CFTC regarding digital assets. However, leading Democrats and banking lobbyists have pushed for amendments that would prevent stablecoin issuers from offering high yields due to fears of a run on deposits.

Currently, the national average interest rate for savings accounts is a mere 0.61%, while individuals can earn up to 5% by holding USD stablecoins. Such low rates benefit banks but adversely affect savers who face losses in real terms due to inflation.

Following the delay, Republican Senator John Boozman has proposed a revised bill foundational to the stalled bipartisan market structure legislation. Meanwhile, Donald Trump has announced a potential framework for a deal regarding Greenland.

In a meeting with NATO Secretary-General Mark Rutte, Trump stated they “have formed the framework of a future deal with respect to Greenland,” leading to the cancellation of previously threatened tariffs against European allies opposed to his territorial ambitions.

Market Response

The crypto markets have reacted minimally, with total market capitalization inching up to $3.1 trillion without any major fluctuations. Bitcoin has shown resilience, bouncing back from a dip to $87,300 to reach $90,000 during early trading in Asia before settling at approximately $89,800. Meanwhile, Ether prices have also returned above $3,000, showcasing minor gains along with other cryptocurrencies like XRP, Monero, and Canton.