Crypto Bill Hits Roadblock as Coinbase Stands Firm

Coinbase officials have told senators that the new bill cannot be implemented because of worries over “stable yield language. ” This is the second time CEO Brian Armstrong has pulled back support, saying in January that a bad bill is worse than no bill at all. The proposed law would stop crypto exchanges from paying users interest on stablecoins, a practice that lets Coinbase earn money by holding customer coins and collecting the yield from assets like U. S. Treasuries. Bank leaders fear that paying rewards on stablecoins would lure deposits away from savings accounts and hurt their ability to lend. They see the bill as a way to protect traditional banking models.Crypto advocates argue that such restrictions are anti‑competitive and would stifle innovation. The latest draft of the bill allows limited rewards for loyalty programs or promotions, and it asks federal agencies to set rules within a year. Senator Lummis responded on social media, insisting that the bill must pass soon to safeguard America’s financial future. She warned that waiting until 2030 would be too late and called for bipartisan cooperation. The crypto community is divided over Coinbase’s position. Some users have voiced support for the exchange’s caution, while others have threatened to boycott Coinbase if it continues to block the bill. The debate highlights a larger clash between banks and crypto firms over how rewards should be handled, and it underscores the growing pressure on lawmakers to create clear regulations for digital currencies.