The Senate Banking Committee has delayed their crypto bill meeting after Coinbase withdrew their support of the bill, per a report from Bloomberg. This also moves its meeting to later this month following the Agriculture Committee.
Senators Push Crypto Bill Meeting After Industry Reaction
According to Eleanor Terrett, the Senate is pushing it further back in light of tensions with the large companies within the industry. At present, no new date has yet been scheduled for lawmakers to hold their meeting again.
The new meeting was supposed to center on the latest version of the CLARITY Act. This bill aims to establish rules for digital assets under U.S. law.
The delay comes after the Senate Banking Committee Chair, Tim Scott, released a draft crypto bill following discussions with Democratic senators.
It did, however, come with more stringent regulations, such as the more rigid rules regarding yield-bearing crypto-products. In truth, it is set to prohibit cryptocurrency firms like Coinbase from offering some kind of reward to users. This is in line with restrictions mentioned in the GENIUS Act.
The changes listed above did not go well with companies that consider yield programs the key to innovation and competition in the digital asset industry.
Coinbase Pulls Support, Cites Concerns
After some analysis of the draft text of this crypto bill, the exchange made it public that it could no longer support this bill in its present form. CEO Brian Armstrong posted on X that he had many reasons against this bill because this bill would place the industry in a worse position than it was in today.
Among these were an effective ban on tokenized equities and rules that may afford the government wide-ranging access to users’ financial information.
Armstrong was critical of proposed regulations that will eliminate reward systems for certain stablecoins. The CEO of Coinbase did point out, however, that such crypto bill proposals let large banks benefit by allowing them to surpress competition.
He did acknowledge the efforts of the legislators to reach a bipartisan solution while also reiterating that he would rather have no solution than one that is flawed.
Also, the Senate Agriculture Committee delayed their plans for the markup of a bill. The two committees now hope for a later opportunity to advance the matter.
Until now, Coinbase had always been one of the major supporters in facilitating the passage of the bill. This new policy shifts that position.
Source: https://coingape.com/crypto-bill-news-u-s-senate-postpones-thursdays-markup-as-coinbase-pulls-support/
