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Senate Pulls Crypto Bill Markup After Coinbase Withdraws Support

Negotiations continue over stablecoin rewards, regulator turf, DeFi language, ethics terms.

Overview

  • Committee Chair Tim Scott confirmed the Banking Committee canceled the planned markup with no new date set, describing the pause as a continuation of bipartisan talks.
  • Stablecoin rewards remain the core dispute, with banks warning of deposit flight and a more restrictive amendment reportedly positioned to secure committee votes.
  • Coinbase CEO Brian Armstrong said the draft is materially worse than the status quo, citing concerns about tokenized equities, DeFi privacy, weaker CFTC authority, and curbs on stablecoin rewards.
  • Industry backing splintered as a16z, Circle, Kraken, Ripple, Coin Center, and others urged proceeding with a markup despite Coinbase’s opposition.
  • The 278-page draft would split oversight between the SEC and CFTC and clarify asset classifications, while Democrats press unresolved ethics provisions viewed as a red line.