Coinbase announced it will no longer back the current version of the market-structure bill slated for markup by the Senate Banking Committee on Thursday today. The exchange’s reversal follows weeks of lobbying over how digital assets are supervised. Bloomberg’s SEC & CFTC reporter Lydia Beyoud and host Scarlet Fu discussed the move again on “Bloomberg Markets.”

Regulators have pressed industry players to endorse a framework that would standardize trading venues, custody rules and reporting obligations for cryptocurrencies. Coinbase’s withdrawal signals discomfort with provisions critics say could limit innovation or expose firms to new compliance burdens. The shift may embolden other platforms to question the bill’s viability.

Lawmakers now face a tighter timeline to reconcile industry concerns before the bill advances to the full Senate. Observers will watch whether the Senate Banking Committee amends language to address Coinbase’s objections or if the proposal stalls amid broader congressional scrutiny of crypto oversight.