After Coinbase Reversal Forces Delay on Crypto Bill, Is There a Path Forward?
Coinbase abruptly withdrew support for the Senate’s crypto market structure bill, leading to the postponement of a key vote and casting doubt on the bill’s prospects. CEO Brian Armstrong’s last-minute decision, spurred by concerns over restrictive provisions on stablecoin yields favored by the banking lobby, caused industry turmoil and fractures among crypto and political allies. Pro-crypto senators, disappointed but still seeking to collaborate, delayed the Senate Banking Committee vote with no new date set. Some industry leaders criticized Coinbase’s isolated stance, while others expressed frustration over the setback amidst rare bipartisan alignment and White House backing. The move exposed rifts within the crypto lobbying coalition, with partners like Andreessen Horowitz and Ripple advocating passage despite imperfections. The Senate Agriculture Committee may mark up the bill next, but further delays are likely. The future path for the legislation remains unclear, with doubts growing about its viability after Coinbase’s influential intervention.
