In the United States, there has been a new controversy over the fight for federal cryptocurrency legislation, particularly the Digital Asset Market Clarity Act. Recently, U.S. Treasury Secretary Scott Bessent denounced Coinbase and other industry participants for stalling the legislation's advancement, claiming that they would prefer no regulating measure at all to one that they disapprove of.

Brian Armstrong, the CEO of Coinbase, has previously said that he would prefer "no bill than a bad bill," further dividing the political and business communities on the appropriate oversight of digital assets.

• The Crypto Bill at a Standstill
• Industry Rift: Coinbase vs. Other Crypto Players & Banks
• Coinbase's Position: "No Bill Than Bad Bill"
• Regulatory Tug-of-War: Traditional Finance vs Crypto Innovation
• Why This Regulatory Battle Matters?

The Crypto Bill at a Standstill

In early 2026, the U.S. Senate attempted to advance a federal regulatory framework for cryptocurrencies, popularly known as the “market structure bill”. The purpose of this bill was to provide clarification on the classification and supervision of digital asset regulators like the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC), including Bitcoin, Ethereum, DeFi products, and stablecoins.

But, Coinbase CEO Brian Armstrong retracted his support for this bill’s draft, emphasising that it would “kill rewards on stablecoins” and would undermine regulatory oversight. It was because of the statement that it prompted the Senate Committee to postpone its hearing, effectively stalling the legislation’s progression.

Industry Rift: Coinbase vs. Other Crypto Players & Banks

Dan Bessent’s statement, “banks and other crypto firms are united against Coinbase”, implies that the industry division goes beyond a normal regulatory dispute. He referred to minor industry players as “recalcitrant actors” to describe those he says would rather see no legislation than a version with provisions they dislike.

As per the present draft, the stablecoin yield-bringing scheme, like incentives offered by Coinbase since 2019, may be severely restricted, which would ultimately support conventional banking firms' idea that such yield is similar to deposit interest. As per the GENIUS Act 2025, stablecoins are an essential component of the cryptocurrency ecosystem because they maintain a 1:1 peg with the U.S. dollar.

The historic GENIUS Act mandates that issuers support stablecoins that have liquid reserves, like U.S. dollars or other low-risk assets. While the law established basic stablecoin rules, the recent market structure bill was expected to build on it with broader digital asset governance until Coinbase’s withdrawal of support complicated the process.