The Senate Banking Committee had originally planned to hold a markup session on Thursday morning. The bill aims to clarify regulatory jurisdiction between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), define when digital assets should be classified as securities or commodities, and establish new disclosure requirements.

The text of the bill was released late Monday, with amendments due by late Tuesday night, paving the way for a planned vote on Thursday. However, support for the bill began to crack on Wednesday.

Ruben Gallego, a key Democratic negotiator on the bill, told reporters he was supposed to meet with Patrick Witt, Executive Director of the President’s Working Group on Digital Assets, but Witt did not show up. Gallego said he is currently unable to support the legislation.

Shortly afterward, Coinbase announced it was withdrawing its support. CEO Brian Armstrong expressed concerns on X about provisions related to stablecoin yield, tokenized equity, and DeFi. However, other crypto firms and advocacy groups continue to voice support for the bill, stating they remain committed to advancing it into law by 2026.

[BlockBeats]