Senate Banking Committee Postpones Major US Crypto Bill After Coinbase Withdraws Support
The U.S. Senate Banking Committee postponed its markup of the Digital Asset Market Clarity Act on January 15, 2026, after Coinbase withdrew support. CEO Brian Armstrong warned the draft would leave the industry “materially worse off,” prompting lawmakers to pause and renegotiate. Key flashpoints include a ban on stablecoin yield/rewards pushed by traditional banks and broad KYC mandates for DeFi front-ends that developers say undermine decentralization. The Senate Agriculture Committee still plans a markup on January 27, but the Banking Committee’s pause signals further revisions are needed to reconcile TradFi and Web3 priorities. The White House says a bipartisan market-structure bill remains a 2026 priority as U.S. risks losing crypto capital to jurisdictions with clearer frameworks like the EU and Hong Kong. Primary keywords: Digital Asset Market Clarity Act, Coinbase, stablecoin rewards, DeFi KYC. Secondary/semantic keywords: crypto regulation, Senate Banking Committee, market-structure bill, TradFi, Web3.
Neutral
The postponement creates short-term uncertainty but is not an outright negative or positive catalyst across the market. Coinbase’s public withdrawal increases headline volatility and may pressure risk-on assets briefly, but the pause opens a negotiation window that could produce a more balanced bill. Negative provisions cited—bans on stablecoin rewards and aggressive DeFi KYC—would be bearish if enacted because they could reduce on‑chain yield products and limit DeFi usability, potentially pressuring stablecoin-linked assets and altcoins tied to DeFi activity. However, lawmakers reworking language to accommodate industry concerns or crafting clearer, proportionate rules could be bullish long term by providing regulatory clarity, attracting capital back onshore and reducing regulatory tail risk. Historical parallels: late-2020 to 2021 regulatory debates often caused short-term price drawdowns on crypto when major firms or regulators signaled opposition, but eventual clarity (e.g., clearer frameworks in other jurisdictions) has supported recovery and inflows. For traders: expect heightened headline-driven volatility near committee meetings and statements from major industry players; tighten risk controls around stablecoin pairs and DeFi tokens in the short term, and monitor legislative language for specifics on yield restrictions and KYC scope to reassess medium- to long-term positioning.