US Senate delays crypto bill debate after Coinbase criticism

The committee had planned to review the latest version of the proposal at a Jan. 15 session. Committee chair Tim Scott said work on the text would continue and that lawmakers from both parties, along with industry participants, remain involved in negotiations.

Armstrong wrote on X that Coinbase cannot support the bill in its current form. He said the draft contains too many inconsistencies. Among his objections, he pointed to provisions that he said would effectively ban tokenized equities, weaken the role of the Commodity Futures Trading Commission (CFTC) in crypto markets, and include amendments that could end stablecoin-related reward programs.

The bill introduced this week aims to set a framework for regulating the crypto market in the United States. It proposes criteria for classifying tokens as securities, commodities, or other categories, and it would assign oversight of spot crypto markets to the CFTC.

One of the disputed areas is the approach to stablecoins and consumer incentive programs. The Senate draft would prohibit crypto companies from paying consumers interest solely for holding a stablecoin. At the same time, it would allow rewards or incentives tied to specific actions, such as making a payment or taking part in a loyalty program.

Stablecoin holding rewards have been a focus of consultations between Coinbase and lawmakers. The company has warned it could withdraw support if the final version restricts such programs more broadly than disclosure-based requirements. The debate also includes how to treat payments that do not come from a stablecoin issuer, but are offered by a platform or related entities.

Armstrong also said crypto firms should be able to compete on a level playing field with other financial services. He added that, in Coinbase’s view, “no bill is better than a bad bill,” while saying he hopes senators can agree on a version that the market can work with.

Without Coinbase’s backing, the bill’s path through the committee is less certain. The exchange is widely seen as a key participant in industry discussions and a significant donor to political efforts aligned with candidates who take a more favorable view of the crypto sector. At the same time, traditional banking groups have argued that stablecoin balances compete with bank deposits and have pressed lawmakers to tighten limits, keeping stablecoin rules and incentives among the central issues in talks.