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Senate Crypto Bill Slips as Banking Panel Pivots to Housing, White House Presses Deal

A fight over stablecoin yields and regulatory turf has splintered industry backing and could push action on the CLARITY Act into March.

Overview

  • After Coinbase withdrew support over stablecoin reward limits and other provisions, the Senate Banking Committee postponed its markup and is prioritizing housing policy, with a delay to late February or March now expected.
  • The Senate Agriculture Committee released its own digital-asset draft and scheduled a Jan. 27 markup that may proceed without Democratic backing, raising hurdles to reaching the 60 votes needed in the Senate.
  • President Trump said he hopes to sign the market-structure bill “very soon,” as White House officials Patrick Witt and David Sacks urged a compromise rather than letting the effort stall.
  • Banking groups are pushing yield‑limiting language to prevent deposit flight, clashing with Coinbase’s stance that restrictions on stablecoin rewards would harm competition and a key revenue stream.
  • Legislative uncertainty has coincided with sharp market stress, including more than $1.08 billion in liquidations, as the industry splits over whether to advance the bill now or hold out for changes.