U.S. Senate Democrats are set to resume talks with cryptocurrency industry representatives after the sudden postponement of a key Senate Banking Committee hearing on the long-awaited crypto market structure bill. The legislation seeks to clarify regulatory oversight of digital assets by dividing authority between the SEC and the CFTC.

The delay was triggered by Coinbase’s withdrawal of support for the draft bill, citing concerns over restrictions on stablecoin rewards and what it described as excessive SEC authority. Coinbase CEO Brian Armstrong argued that the bill favors banks and limits fair competition from crypto firms.

Despite the setback, lawmakers insist negotiations are ongoing. Discussions are expected to involve members of both the Senate Banking and Agriculture Committees, along with crypto policy groups. Several senators, including Cynthia Lummis and Bill Hagerty, have expressed optimism that a bipartisan agreement remains within reach.

Industry reactions have been mixed, with some executives urging lawmakers to continue negotiations rather than abandon the process. A major sticking point remains whether stablecoin issuers should be allowed to offer yield or reward programs, an issue opposed by bank lobbyists and some Democrats.

While the Banking Committee’s markup is on hold, the Agriculture Committee still plans to hold its hearing later this month. Analysts are divided on whether the pause will help build consensus or further complicate passage, especially given election-year pressures and the Senate’s 60-vote requirement.