Coinbase’s Regulatory Setback: Senate Banking Committee Delays Crypto Market Structure Bill Amid Bitcoin Price Volatility

In a significant regulatory development impacting the cryptocurrency sector, the United States Senate Banking Committee has postponed its review of a proposed crypto market structure bill, creating uncertainty for industry leaders like Coinbase. This legislative delay coincides with Bitcoin's price retreat toward the $95,000 mark, following a brief recovery above $97,000 earlier in the week. The proposed legislation, which Coinbase has actively lobbied for, aims to provide crucial clarity on digital asset classifications and delineate the jurisdictional boundaries of the Securities and Exchange Commission (SEC). The postponement represents a notable setback for the industry's push towards a more defined regulatory framework in the United States. Concurrently, the cryptocurrency market is experiencing a shift in momentum, with slowing inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) contributing to the recent price correction. This combination of regulatory headwinds and changing investment flows underscores the ongoing volatility and sensitivity of digital asset markets to both policy developments and capital movement trends. As of January 16, 2026, the situation highlights the intricate relationship between regulatory progress, institutional investment behavior, and price action in the evolving digital finance landscape.

Bitcoin Drops Toward $95K As US Senate Banking Committee Delays Crypto Market Structure Bill

Bitcoin retreated toward $95,000 after briefly reclaiming the $97,000 level earlier this week. The reversal followed slowing inflows into US spot bitcoin ETFs and a regulatory setback in Washington.

The Senate Banking Committee postponed review of a proposed crypto market structure bill that would clarify token classifications and SEC jurisdiction. Coinbase, which had lobbied for such legislation, withdrew support citing unresolved issues in the draft text.

Market participants viewed the delay as a temporary hurdle rather than a fatal blow to regulatory progress. The pullback comes amid typical summer liquidity conditions, with traders noting strong underlying demand at lower price levels.

Bitcoin Surges to Two-Month High Amid Institutional ETF Demand

Bitcoin reclaimed the $97,000 level this week, buoyed by $1.5 billion in net inflows into US spot Bitcoin ETFs since January. Wednesday alone saw $843.6 million enter these funds, accelerating the cryptocurrency's breakout from a prolonged consolidation around $88,000.

Ethereum products mirrored the trend with $164 million in inflows on January 15, marking four consecutive days of positive flows. The rally comes as regulatory uncertainty persists—the US Senate Banking Committee delayed reviewing a crypto bill following opposition from Coinbase's CEO.

Despite hovering NEAR $95,579 at press time, Bitcoin remains below the psychological $100,000 barrier. Market observers suggest the ETF inflows indicate institutional buyers may have absorbed available sell-side liquidity, though sustainability remains unproven.