Less than a day before a scheduled Senate Banking Committee vote, Coinbase withdrew its support Wednesday for the crypto market structure bill, forcing senators to delay the markup. The company cited growing concern over bank-backed amendments that would limit stablecoin yield.
Sen. Cynthia Lummis criticized parts of the industry’s response and pledged continued work; she said “Today’s response from some in the industry proves they are just not ready, and while I am deeply disappointed, I am committed to taking this feedback and partnering with the industry to deliver a product that helps them thrive.”
The core dispute centers on rules limiting yield on dollar-pegged stablecoins. As of Tuesday, observers reported that Coinbase had signaled willingness to accept earlier bill language.
Industry sources said bipartisan bank-backed amendments looked likely to pass, prompting Coinbase to reverse course; one lobbyist observed “Coinbase had a red line and made a judgement call.” The company’s CEO, Brian Armstrong, visited Capitol Hill and spoke to media as talks continued, appearing publicly.
Political insiders warned the move cost credibility on the Hill, and White House advisor Patrick Witt publicly accused some pro-crypto Democrats of acting in “bad faith.” Industry nonprofit leader Cody Carbone also urged continued engagement, saying “Inaction is unacceptable.”
The episode exposed fractures inside a major super PAC network funded largely by Coinbase. Company leadership emphasized its political influence when noting the PAC had amassed about $116 million for the 2026 midterms.
Backers split publicly when Andreessen Horowitz executive Miles Jennings urged lawmakers to pass the bill despite imperfections; he said the measure “isn’t perfect,” but must pass. Ripple CEO Brad Garlinghouse said he was surprised by Coinbase‘s sudden opposition, said he had not expected such a move.
The next procedural step could be a January 27 markup in the Senate Agriculture Committee, though multiple sources expect further delays as Senate Banking decides how to proceed.
