Senate Committee Postpones Crypto Bill Markup Following Coinbase Pushback
Washington’s push to put in writing clear guidelines for crypto hit one other snag after the Senate Banking Committee postponed its deliberate markup of a sweeping market construction invoice, hours after Coinbase pulled support for the most recent draft.
Chairman Tim Scott stated late Wednesday the committee would delay the markup as bipartisan negotiations proceed, however didn’t set a brand new date.
The delay got here after Coinbase CEO Brian Armstrong publicly withdrew assist for the draft invoice, which goals to make clear how crypto tokens are labeled and place spot market oversight with the CFTC.
Armstrong wrote, “After reviewing the Senate Banking draft textual content over the past 48hrs, Coinbase sadly can’t assist the invoice as written.”
Scott Signals Ongoing Talks Despite Industry Pushback
Coinbase’s objections landed in the midst of a fast-moving lobbying struggle over stablecoin rewards, with banks urgent lawmakers to stop crypto platforms from providing yield-like incentives that may appear and feel like curiosity on deposits.
The banking trade says Congress already drew that line within the GENIUS Act, which prohibits stablecoin issuers from paying curiosity or yield merely for holding a fee stablecoin, and it argues the market construction invoice ought to shut what it calls an finish run by way of alternate rewards.
Scott stated he has spoken with stakeholders and signaled negotiations proceed.
“This invoice displays months of significant bipartisan negotiations and actual enter from innovators, buyers and regulation enforcement,” he stated. “The objective is to ship clear guidelines of the street that defend customers, strengthen our nationwide safety, and guarantee the way forward for finance is constructed within the United States.”
Markup Delay Extends Wait For Clear Crypto Framework
The draft in play would limit paying curiosity solely for holding a stablecoin, and it could nonetheless permit rewards tied to actions comparable to funds or loyalty packages, with the SEC and CFTC tasked with setting disclosure guidelines.
The committee had aimed to take up the invoice in a Thursday session initially set for 10 am ET, and the delay leaves the trade ready once more for a legislative path that might change years of case by case enforcement with a single framework.
The Senate’s broader crypto calendar is already shifting. Senate Agriculture Committee Chairman John Boozman has also pushed his committee’s markup deeper into January, saying lawmakers want extra time to lock down remaining coverage particulars and construct broad assist.
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