The US Senate Banking Committee has decided to postpone consideration of a bill aimed at regulating cryptocurrencies, following public opposition from Brian Armstrong, Coinbase’s CEO. The text, introduced earlier this week, seeks to clarify the legal status of digital assets and would place the Commodity Futures Trading Commission (CFTC) in charge of overseeing spot markets. A hearing initially scheduled for Thursday has been pushed back, with Senator Tim Scott citing the continuation of “constructive” discussions.
Armstrong rejected the bill in its current form, criticizing several provisions on the X social network that he said were problematic. These include an implicit ban on tokenized equities, limits on rewards tied to stablecoins, and a weakening of the CFTC’s role. Coinbase, a major industry player, has invested heavily in political campaigns and wields influence in the ongoing regulatory debate. The lack of its support complicates the bill’s progress in Congress.
While the bill remains open to amendments, it is already sparking intense debate. In particular, it would prohibit the payment of interest for simply holding stablecoins, while allowing certain incentives linked to the active use of these digital assets. Armstrong, while critical, said he was “optimistic” about a compromise. The delay reflects persistent divisions among lawmakers, regulators and the industry over how to rein in a fast-growing sector without stifling innovation.