President Donald Trump declared at the World Economic Forum in Davos on Wednesday that he hopes to sign crypto market structure legislation “very soon.” However, the legislation remains gridlocked in Congress, exposing a widening gap between presidential ambition and legislative reality.
The standoff between Coinbase and banking lobbyists over stablecoin yields threatens to derail what lawmakers call a once-in-a-generation regulatory window—risking a two-year delay that could push crypto business overseas.
Trump: “Bitcoin, All of Them”
“Now Congress is working very hard on crypto market structure legislation, which I hope to sign very soon, unlocking new pathways to reach financial freedom,” Trump said during his Davos speech. While reading from prepared remarks, the president briefly looked away from the teleprompter to add, “Bitcoin, all of them.”
The statement came just days after the Senate Banking Committee abruptly canceled its scheduled markup. Trump’s remarks read as a direct pressure campaign on lawmakers.
Banking Committee Delayed, Agriculture Committee Moves Forward
The crypto market structure bill is being handled by two Senate committees simultaneously. The Banking Committee oversees securities-related regulations, while the Agriculture Committee handles commodity regulations. Both bills must pass and be merged before reaching the full Senate floor.
The Banking Committee postponed last week’s markup after Coinbase withdrew its support. This week, the committee shifted focus to Trump’s housing affordability push. The crypto bill is now expected in late February or March.
Meanwhile, Senate Agriculture Committee Chairman John Boozman released the text of the Digital Commodity Intermediaries Act on Wednesday, confirming the committee will proceed with its Jan. 27 markup. Boozman acknowledged, however, that bipartisan negotiations with Sen. Cory Booker failed to reach an agreement.
The Core Conflict: Stablecoin Yield
Coinbase’s opposition centers on provisions related to stablecoin yield. The GENIUS Act, signed by Trump last year, allows stablecoin holders to earn rewards—effectively interest payments. These yields can exceed traditional bank deposit rates, prompting banking industry lobbyists to push for restrictions in the new market structure bill.
Coinbase CEO Brian Armstrong withdrew support, stating, “We’d rather have no bill than a bad bill.” In a Bloomberg interview at Davos, Armstrong doubled down: “The bank lobbying groups and bank associations are out there trying to ban their competition, and I have zero tolerance for that. I think it’s un-American.”
White House Fires Back at Coinbase
The White House responded sharply. Patrick Witt, executive director of Trump’s digital assets council, publicly criticized Armstrong’s stance.
“‘No bill is better than a bad bill.’ What a privilege it is to be able to say those words thanks to President Trump’s victory, and the pro-crypto administration he has assembled,” Witt said.
He warned that if crypto industry players obstruct the bill’s passage now, they would be “fumbling the ball” with potentially disastrous consequences.
Lawmakers Fear Falling Behind
In interviews with Fox Business, lawmakers expressed growing frustration over the stalled legislation. Sen. Cynthia Lummis (R-WY), a leading crypto advocate who retires next year, expressed disappointment: “I feel a little bit like Flat Stanley after he got run over by the Mack Truck. I have 11 more months to work on this and get it done.”
Blockchain Association CEO Peter Smith warned of severe consequences: “If this doesn’t pass now—and it’s been worked on already for about a year-and-a-half—that will result in a significant delay after the midterms. This means, realistically, two more years of delay.”
Rep. William Timmons (R-SC) emphasized the economic stakes: “Tens of billions of dollars will come back to the US if Congress establishes a good framework. If not, everything related to crypto may go overseas.”
While lawmakers deliberate, markets are already advancing. The New York Stock Exchange announced plans to launch a blockchain-based tokenized securities trading platform featuring instant settlement and 24/7 operations.
Sen. Thom Tillis (R-NC) noted the urgency: “If we want to continue to be the gold standard for worldwide banking, then we also have to get crypto right because it is, no question, a part of the future of top-tier banking systems.”
What’s Next
The battle lines are clear. The Trump administration wants swift passage, Coinbase treats stablecoin yield restrictions as a red line, and banking lobbyists demand those restrictions remain.
The Agriculture Committee’s bill focuses on CFTC jurisdiction over digital commodity spot markets and doesn’t directly address the stablecoin yield issue, suggesting the Jan. 27 markup will proceed. However, a complete market structure framework requires the Banking Committee’s bill to pass and merge with it.
The resolution of the Coinbase-banking lobby standoff over stablecoin yields remains the critical variable. Despite White House pressure, Armstrong shows no signs of backing down.
