U.S. Crypto Market Structure Bill Delay Sparks DeFi Debate and Industry Reset

The latest effort to establish a comprehensive U.S. crypto market structure framework faced a sudden setback after Coinbase withdrew its support just hours before lawmakers canceled a key hearing. While the delay stalled progress on legislation that could shape the future of digital assets, many leaders across the crypto and decentralized finance (DeFi) sector see the pause as an opportunity rather than a failure.

The proposed crypto market structure bill aimed to create clearer regulatory pathways for digital assets, stablecoins, and decentralized platforms in the United States. However, critics argue that the bill, in its current form, risked stifling innovation. Mike Silagadze, founder of Ether.fi, expressed little concern over the delay, suggesting that the legislation would have imposed harmful restrictions on DeFi protocols and limited stablecoin yields. He believes a revised version with a more balanced regulatory approach will eventually return.

Legal experts within the crypto industry echoed similar sentiments. Bill Hughes, senior counsel at Consensys, framed the setback as a strategic signal in ongoing negotiations between lawmakers and the crypto sector. According to Hughes, the delay shows that industry participants are willing to walk away from legislation that overregulates decentralized technology. This leverage, he argued, could encourage lawmakers to soften stricter provisions in future revisions.

Ripple CEO Brad Garlinghouse also weighed in, noting that while the delay may appear negative on the surface, it prevents the immediate adoption of an overly restrictive framework. He suggested that a more favorable regulatory environment for DeFi and institutional crypto participation could emerge once the bill is reworked.

Coinbase’s withdrawal underscores broader industry concerns, highlighting that even major U.S. exchanges are unwilling to support legislation that could slow innovation. Despite the pause, lawmakers such as Senator Tim Scott emphasized that discussions continue across party lines and with industry stakeholders.

As negotiations move forward, the delay may ultimately lead to a clearer, more innovation-friendly crypto regulation framework that aligns better with the evolving DeFi ecosystem.