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Senate Halts Crypto Bill Markup After Coinbase Pulls Support

Disputes over stablecoin rewards plus ethics language stalled the 278-page market-structure draft.

Overview

  • Banking Chair Tim Scott postponed the committee’s vote with no new date and said talks with industry, banks, and both parties continue in good faith.
  • Coinbase withdrew backing hours before the session, with CEO Brian Armstrong citing a de facto ban on tokenized equities, weaker CFTC authority, and potential moves to end stablecoin rewards.
  • The draft splits oversight between the SEC and CFTC and bars interest for simply holding payment stablecoins while permitting activity-based rewards, a compromise banks still oppose over deposit flight concerns.
  • Ethics provisions limiting officials’ crypto-related gains remain a sticking point for Democrats, while the White House has resisted targeted language, according to reports.
  • The Senate Agriculture Committee also delayed its related markup to late January, and insiders say a tighter amendment on stablecoin rewards could still be introduced.