Coinbase CEO Brian Armstrong publicly sparred with crypto reporter Eleanor Terrett this week after she questioned the trade’s stance on crypto regulation, prompting an trade that shortly spilled onto social media and reignited tensions between trade leaders and the broader neighborhood.
Senate Banking postponed its deliberate Jan. 15 markup of the CLARITY Act, leaving timing for Senate motion on H.R. 3633 depending on continued negotiations over language that might form whether or not stablecoin rewards are handled as deposit-like yield.
The committee’s government session itemizing for Jan. 15 is labeled “POSTPONED” and “Standing: POSTPONED” on the panel’s schedule web page. No substitute date was posted within the committee document supplied.
Chairman Tim Scott stated the markup could be delayed “as bipartisan negotiations proceed.” He added, “everybody stays on the desk working in good religion,” in response to his assertion.
The delay interrupts a legislative path that had regarded linear after the Home permitted H.R. 3633 by a 294-134 vote on July 17, 2025. It was then despatched to the Senate, the place it was acquired Sept. 18, 2025, and referred for consideration.
Senate Banking’s majority employees introduced on Jan. 9 that the committee would maintain a markup on Jan. 15. The announcement framed the session as an upcoming step for digital asset market construction laws, in response to the bulk’s discover.
With the committee citing ongoing talks, the procedural pause is now intertwined with a product dispute that locations stablecoin rewards close to the middle of lobbying stress. Brian Armstrong, Coinbase’s CEO, wrote in an X submit that “draft amendments” would “kill rewards on stablecoins.”
Armstrong added, “We’d slightly haven’t any invoice than a nasty invoice”. Coinbase withdrew assist for the Senate push shortly earlier than the markup and tied the dispute to stablecoin rewards and coalition timing.
Stablecoin rewards and the deposit-like yield debate
Banks have argued that reward-bearing stablecoins can perform like deposits. That framing treats “rewards” as a consumer-facing yield product that competes with financial institution funding.
Financial institution have considerations that some tokens pay reward charges resembling high-yield deposits round 3.5%.
That fee reference issues for lawmakers as a result of yield mechanics might be carried out at totally different layers of the stack. These embody issuer packages, trade packages, and wallet-linked incentives, every carrying totally different shopper expectations and regulatory implications.
Coinbase’s personal documentation illustrates how “rewards” might be structured with program circumstances slightly than framed as a deposit rate of interest. Coinbase assist supplies describe “Boosted Rewards” tied to USDC, together with a base reward fee and “boosted” tiers primarily based on participation necessities.
These particulars are specified by Coinbase’s assist documentation. For Senate negotiators drafting guardrails, that distinction can drive whether or not any restriction bans specific “curiosity,” restricts advertising and pass-through yield, or limits particular reward pathways seen as bank-like.
On the similar time, negotiators may intention to protect room for incentive packages that don’t resemble insured deposit accounts. The query is whether or not lawmakers draw the road on the stablecoin degree, the trade degree, or each.
White Home leverage claims add uncertainty to the coalition
The political overlay intensified as a declare about White Home leverage circulated alongside the committee’s delay.
Eleanor Terrett posted on X, citing an unnamed supply, that the White Home was contemplating pulling assist except Coinbase returned to the desk with an settlement on yield that satisfies banks.
“The White Home is alleged to be livid with Coinbase’s “unilateral” motion on Wednesday, which it apparently was not notified of prematurely, calling it a “rug pull” in opposition to the White Home and the remainder of the trade. The White Home doesn’t consider that one firm speaks for your complete trade, the supply continued.”
The identical declare was amplified by reprints and commentary, altering perceptions of the invoice’s coalition energy even with out official affirmation.
Individually, Erik Voorhees echoed Armstrong’s “no invoice” posture with profanity, reflecting that some components of the crypto constituency might favor legislative delay to constraints on reward fashions.
Armstrong, straight referred to as out Terrett in a reply.
Normally, love your posts, however this isn’t correct. The White Home has been tremendous constructive right here.
They did ask us to see if we are able to go work out a take care of the banks, which we’re at present engaged on.
Really, we have been cooking up some good concepts on how we will help the neighborhood banks particularly on this invoice, since that is what that is about…..the neighborhood banks, proper? Extra coming quickly.
Terrett hit again, claiming Armstrong had validated her reporting, stating,
“My reporting was hermetic and correct.
You additionally simply cited the central level of my story as right: that the White Home requested Coinbase to go safe a deal on yield. My reporting is that WH assist now seems to be contingent on that final result.”
The committee’s postponement means the negotiation monitor, slightly than formal modification votes, will doubtless decide when and the way the difficulty is resolved.
Scale, calendar constraints, and doable paths ahead
The coverage stakes prolong past the present markup as a result of the definition of allowable rewards would scale with stablecoin provide and distribution. DeFiLlama knowledge put the stablecoin market capitalization at about $311.563 billion at retrieval.
Citi’s GPS analysis projected stablecoin issuance of $1.9 trillion in a base situation and $4.0 trillion in a bull situation by 2030. The framework additionally tied transaction exercise to velocity assumptions akin to 50x, making distribution economics and steadiness retention central to enterprise fashions, in response to Citi GPS.
Underneath these magnitudes, even slim drafting adjustments round what constitutes “rewards” may shift which intermediaries seize spreads and buyer relationships. The checklist of potential winners and losers consists of banks, exchanges, and cost companies.
Within the close to time period, the markup calendar turns into the exhausting constraint. Senate Banking’s schedule reveals solely the postponed standing for Jan. 15 and doesn’t checklist a rescheduled government session within the supplies right here.
Scott’s assertion retains negotiators’ give attention to a deal path slightly than a reset. Which means the subsequent observable step for market contributors is a revised date or a brand new draft that resolves the yield dispute with out shedding votes wanted to advance the invoice.
A number of legislative outcomes stay in keeping with the document now out there. One path is a rewrite that constrains deposit-like yield whereas allowing narrowly outlined incentive packages, utilizing definitions and disclosures that separate bank-like merchandise from platform advertising.
A second path is an extended delay if negotiators can not agree on whether or not rewards must be restricted on the stablecoin degree, the trade degree, or each. That threat seems elevated the place packages resemble shopper financial savings yields and trade teams publicly sign a willingness to just accept delay.
A 3rd path is the invoice shifting with some trade assist even when a big trade stays opposed. That final result would align with reporting that coalition dynamics have been already strained across the markup window.
Market contributors monitoring likelihood are additionally watching sentiment venues that outline decision off official sources. Polymarket listed a 2026 CLARITY Act final result contract that references Congress.gov and official authorities sources for settlement, although the market worth itself isn’t an official forecast.
For merchants and compliance groups, that settlement language makes the subsequent committee posting and any up to date invoice textual content extra related than social-media claims, since official actions drive each legislative progress and contractual decision standards.
For now, the one formal change is procedural and documented: Senate Banking postponed the Jan. 15 CLARITY Act markup whereas negotiations proceed. The committee has not posted a brand new date within the sources out there right here.
