For crypto companies and everyday users in the US, the biggest challenge right now isn't price swings or meme tokens, but uncertainty. Exchanges, builders, and investors have spent years navigating unclear rules, courtroom battles, and sudden enforcement actions that leave little room for long-term planning.
This week was meant to move the industry closer to clarity. Instead, it delivered another pause. That pause came after Coinbase, one of crypto’s most influential companies, publicly rejected a key Senate crypto bill, prompting lawmakers to slow the process and rethink their approach.
Why Coinbase Says the Bill Goes Too Far
Coinbase CEO Brian Armstrong made his position public after reviewing the Senate Banking Committee’s draft market structure bill. The proposal aims to clarify when digital tokens should be treated as securities or commodities and would hand oversight of spot crypto markets to the Commodity Futures Trading Commission.
That goal has long been supported by much of the industry. The problem, according to Armstrong, is in the details.
“After reviewing the Senate Banking draft text over the last 48 hours, Coinbase unfortunately can’t support the bill as written,” he said in a public post. Armstrong warned that the proposal could effectively block tokenized equities, restrict decentralized finance, and weaken privacy protections. He also argued that it risks undermining the CFTC in ways that could leave crypto innovation overly exposed to the Securities and Exchange Commission.
Oluwajeminipe Fasheun-Motesho
Stablecoins, DeFi, and a Growing Industry Rift
One of the most sensitive flashpoints is stablecoins. The draft bill would prohibit crypto firms from paying interest simply for holding a stablecoin, a practice that has become a major point of tension between banks and crypto companies.
While rewards tied to payments or loyalty programs would still be allowed, Armstrong said the restriction reflects a broader issue in how lawmakers are approaching crypto innovation.
“We appreciate all the hard work by members of the Senate to reach a bipartisan outcome, but this version would be materially worse than the current status quo,” he said. “We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft.”
Coinbase’s position carried immediate weight. Just hours after Armstrong’s comments, the Senate Banking Committee postponed its planned markup of the bill. Chairman Tim Scott confirmed that the session would be delayed as bipartisan discussions continue, without offering a new timeline.
What the Delay Says About Crypto Regulation in the US
The slowdown highlights how fragile the push for comprehensive crypto regulation remains. Lawmakers are trying to replace years of enforcement-led uncertainty with clearer rules, but major industry players are signaling that speed cannot come at the cost of functionality or fairness.
The timing also matters. The pause comes as the Trump administration signals a more open posture toward parts of the crypto industry and lawmakers attempt to rebuild trust after years of regulatory conflict.
For now, the message from Coinbase is straightforward. The industry wants rules, but not ones that limit core crypto use cases or slow innovation before it has a chance to mature. Whether lawmakers revise the draft to bring major platforms back onside or allow the effort to stall again will shape how crypto evolves in the US.
Until then, the uncertainty builders and users hoped would finally ease is still very much in place.
David Adubiina
