Crypto bill delay 'may ultimately be constructive' for final product, Benchmark says

Wall Street broker Benchmark views a delay of the Senate Banking Committee's crypto market structure bill as a potentially constructive pause rather than a setback.

"While the delay may at first appear as cause for concern among those desiring the clarity that the legislation would enable, it may ultimately be constructive, in our view, as it will provide the committees with breathing room so they can work through fundamental policy disagreements on issues such as stablecoin yield," analyst Mark Palmer said in a Thursday report.

U.S. lawmakers delayed a key procedural step toward comprehensive crypto regulation late Wednesday by postponing planned a markup of the Senate’s digital asset market structure bill as negotiations intensify over stablecoin yield and tokenized securities.

Read more: Senate Banking Committee cancels crypto market structure markup

The bill, which would set the rules for how federal regulators oversee the U.S. digital asset industry, was postponed with no new markup date scheduled, according to committee Chairman Tim Scott.

Stablecoins are cryptocurrencies typically pegged to assets such as fiat currencies or gold and form a critical backbone of the crypto economy, functioning as payment rails and a key mechanism for moving funds across borders. Tether’s USDT is the largest stablecoin, followed by Circle’s USDC.

Palmer noted that the delay reflects unresolved disagreements on some of the bill’s most politically sensitive provisions. Chief among them is whether stablecoin issuers or platforms should be allowed to offer yield to users.

The current Senate draft would prohibit paying interest simply for holding a payment stablecoin, while permitting limited, activity-based rewards. Palmer said that debate has sharpened tensions between traditional banks, which argue that yield-bearing stablecoins could drain insured deposits, and crypto firms, which warn that restrictions could undermine liquidity, innovation and competitiveness in decentralized finance.

Another sticking point is how tokenized securities, blockchain-based representations of stocks, bonds or funds, should be regulated. Palmer said institutional investors view tokenization as a major growth driver over the next several years, but overly broad language could push activity offshore or effectively ban certain products if jurisdictional lines between the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) remain unclear.

The postponed markups also come as industry consensus frays. The report highlighted that Coinbase (COIN), long seen as a major beneficiary of regulatory clarity, has withdrawn support for the current draft, arguing that provisions on stablecoin rewards and tokenized assets would be worse than the status quo. Benchmark views the move as part of a high-stakes negotiation rather than a definitive break, noting that stablecoin-related revenue has become increasingly important to Coinbase during slower trading periods.

Looking ahead, the broker expects the additional time to be used to refine amendments, reconcile competing interests and build the bipartisan support needed for floor passage. If successful, the bill could reshape U.S. financial markets and unlock deeper institutional participation in crypto. The delay raises the odds that whatever emerges will be durable, workable and ultimately more supportive of long-term market growth.

Still, not all analysts are optimistic about the delay’s impact.

In a note released after the cancellation, analysts at Compass Point said they had previously expected the market structure bill to become law in the second quarter of 2026. That forecast is now uncertain. “Final passage could be pushed into 3Q26,” the firm wrote, “if SBC and the Senate Agriculture Committee (SAC) can vote their bills out of committee.”

Compass Point called the canceled markup and growing industry opposition a “material setback” to legislation that has taken years of bipartisan effort to build. While some firms view the delay as an opportunity to improve the draft, others see it as a signal that lawmakers may not be able to resolve core disagreements over stablecoin yield and jurisdictional authority between the SEC and CFTC.

“We are now putting odds of passage at 60% due to this material setback,” the analysts wrote, lowering their confidence in the bill’s near-term future. The shift reflects rising concern that momentum behind the legislation could slow as the 2026 election cycle approaches and Congress grows more cautious about complex financial reform.