In January, Coinbase CEO Brian Armstrong posted on X the night before a planned Senate Banking Committee markup, declared his company could not back the bill, and forced the hearing off the calendar.
A Bill That Keeps Hitting WallsSenators Thom Tillis and Angela Alsobrooks announced the revised text March 20, with White House backing. The compromise bans rewards paid simply for holding a stablecoin but allows activity-based rewards tied to payments or platform use.
Banks got what they wanted most. Crypto platforms got a narrow lane — though what qualifies as activity-based rewards remains, according to sources familiar with the draft, frustratingly vague.
The SEC, CFTC, and Treasury would have 12 months to define the rules more precisely, a timeline that offers little immediate comfort to the industry.
Crypto insiders who attended a closed-door Capitol Hill session Monday said the language was overly restrictive. One person familiar with the industry’s first look described the opening impression as a letdown.
What’s At Stake For CoinbaseReports say the exchange pulled in $1.35 billion from stablecoins in 2025 alone, most of it from USDC distribution arrangements with Circle.
A Fragile Timeline With New ComplicationsThe bill still faces multiple hurdles before it becomes law, including a full Senate floor vote requiring 60 votes and reconciliation with the House-passed version from July 2025.
Senator Bernie Moreno has been direct: if the bill does not reach the Senate floor by May, crypto legislation risks going dark until after the midterm cycle.
The stablecoin market sits at $316 billion. For now, the clock is running — and Coinbase has made clear it is not ready to get behind the deal.
Featured image from Quakers and Business, chart from TradingView
