Crypto Drama: Senate Bill Paused, Coinbase Throws a Fit

So, the Senate Banking Committee decided to hit the pause button on their crypto market structure bill markup. Why? Because Coinbase decided to throw a late-night temper tantrum. 🎭 What was looking like a smooth bipartisan ride suddenly turned into a Washington-style soap opera. Industry bigwigs are now publicly bickering, proving that when it comes to crypto, everyone’s an expert-until they’re not.

Senate Banking Committee Chairman Tim Scott (R-S.C.) tried to spin this as a “strategic pause” rather than a full-on meltdown. He took to X (formerly Twitter, because Elon) to reassure everyone that “bipartisan negotiations are still alive.” Sure, Tim. Because nothing says “alive” like postponing a markup. He added, “This bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement.” Translation: “We’re pretending this hiccup didn’t happen.”

Scott also framed the bill as a “foundational framework” rather than a handout to the crypto bros. His goal? “To deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.” Well, isn’t that just peachy? 🍑

Coinbase Breaks Ranks Late

Cue the drama. Coinbase CEO Brian Armstrong decided to play the villain, declaring after a 48-hour review that Coinbase “can’t support the bill as written.” Why? Apparently, it’s worse than the Wild West we currently have. Armstrong cited “a defacto ban on tokenized equities,” “DeFi prohibitions,” and a potential CFTC vs. SEC showdown that would “stifle innovation.” So, basically, the bill is the equivalent of a participation trophy-useless and kind of insulting.

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…

– Brian Armstrong (@brian_armstrong) January 14, 2026

Armstrong’s conclusion? “We’d rather have no bill than a bad bill.” But hey, he’s still “quite optimistic” about a compromise. Translation: “I’m mad, but I’m not that mad.” 🤷‍♂️

Crypto Industry Split

Of course, Coinbase’s stance sparked a counter-reaction from other crypto firms. A16z, Circle, and Kraken rallied behind the Senate Banking GOP’s push to keep momentum alive. Ripple CEO Brad Garlinghouse called the bill “a massive step forward,” because apparently, any step forward is better than standing still. 🚶‍♂️

Meanwhile, Tim Draper jumped in to say Armstrong was justified because the Senate compromise “is worse than no bill at all” and “the banks have been meddling.” Ryan Rasmussen from Bitwise Asset Management piled on, calling the draft “broadly harmful” and concluding that the industry would “rather have no bill than a bad bill.” Can we get a drumroll for this chorus of grievances? 🥁

David Sacks, the White House Crypto Czar, urged the industry to use the delay wisely-because apparently, crypto execs thrive under pressure. “Passage of market structure legislation remains as close as it’s ever been,” he wrote. Translation: “Don’t screw this up.”

Mike Novogratz from Galaxy Digital tried to end on a positive note, saying he’s “very confident” a bill will get done soon because he’s spoken to “over 10 senators” in the past 24 hours. Well, aren’t you just the crypto ambassador? 🌍

At press time, the total crypto market cap stood at $3.22 trillion. Because, sure, why not throw in some random numbers to make this all seem super important? 💰

2026-01-15 14:15

Coinbase Breaks Ranks Late

Crypto Industry Split

Read More