Coinbase CEO Reveals Why Delayed Crypto Market Structure Bill Could Be a ’Win-Win’ for Everyone
The regulatory gridlock holding back crypto legislation might just be setting the stage for a breakthrough.
Why the delay works
Time is a luxury in policy-making. The extra months—or years—let lawmakers sidestep rushed decisions during market mania. It forces the industry to mature beyond memecoins and speculative froth, building real infrastructure that regulators can actually evaluate. Think of it as a forced cooling-off period after a decade-long bender.
Building the blueprint
While D.C. debates, the market isn't waiting. Institutional custody solutions, clearer tax reporting, and compliance tech are being built from the ground up. This organic development creates a de facto framework—one that's battle-tested by actual use, not just theoretical white papers. It gives legislators a working model to codify, rather than inventing rules for a ghost.
The political calculus shifts
Election cycles turn over. New faces bring fresh perspectives, often less tied to old financial guardrails. The growing voter bloc of crypto holders becomes harder to ignore. Delay turns political risk into political opportunity, aligning bipartisan support when the timing finally clicks.
A better bill emerges
The final legislation won't be a knee-jerk reaction to last year's crash or hype cycle. It'll reflect a stabilized industry with clearer winners, established practices, and measurable economic impact. That means smarter rules on custody, exchange operations, and investor protections—crafted with actual data, not fear.
The win-win nobody saw coming
For once, bureaucracy's sluggish pace might deliver a sharper outcome. TradFi's lobbyists hate it—nothing unsettles old money like a system that evolves faster than their influence peddling. The delay forces crypto to grow up, and gives regulators a mature industry to oversee. Sometimes the best policy is the one you don't rush.
Coinbase CEO Remains Optimistic
Speaking Wednesday on CNBC during the World Liberty Forum at Mar‑a‑Lago, Armstrong expressed confidence that lawmakers will ultimately deliver what he described as a “win‑win” outcome for the crypto industry, the banking sector, and American consumers.
“There is now a path forward,” he said, framing the legislation as an opportunity to bring regulatory certainty while strengthening the country’s position in the global digital asset race.
The legislation cleared the House of Representatives in July 2025 with a strong bipartisan vote of 294–134. It was later referred to the Senate Committee on Banking, Housing, and Urban Affairs in September 2025, where it has yet to receive a floor vote.
Planned committee markups in mid‑January 2026, including sessions scheduled for January 15 and January 27, were canceled or indefinitely postponed amid industry pushback and internal disputes.
In late January and early February, the Senate Agriculture Committee advanced a related measure that included elements of the Digital Commodity Intermediaries Act (S. 3755) on a narrow party‑line vote. However, that step has not resolved the broader stalemate over market structure reform.
Senator Moreno Opposes Stablecoin Rewards
One of the main sticking points continues to be stablecoin yield — whether issuers should be allowed to offer rewards or interest to holders. Senator Bernie Moreno has argued that such rewards should not be included in the framework.
During the CNBC interview, Moreno suggested that, unless one owns a bank, one likely should not be concerned. He contended that consumers WOULD benefit from greater competition for their deposits.
Nonetheless, the Senator from Ohio further expressed confidence that the crypto legislation would ultimately pass the current deadlock, saying, “We are going to get this bill across the finish line,” and adding that he hopes it happens by April.
Coinbase CEO has taken a different view on stablecoins, arguing that rewards are essential to building a competitive domestic market. “To build the stablecoin industry in America, we have to have stablecoin rewards,” he said.
The executive also noted that some financial institutions are already embracing the technology, adding that the “smartest banks” are leaning into crypto and forming partnerships with Coinbase.
“It is good for the banking industry to embrace innovation,” Armstrong said, stressing that the United States has historically succeeded by adapting rather than protecting incumbents.
“America has never been one to be stagnant and protect the incumbents. We want to lean into the future and make sure America stays competitive. We are existing on a global stage here.”
Bitcoinist reported Tuesday that the WHITE House is considering convening another meeting as soon as Thursday to address the stablecoin yield issue, signaling that high‑level efforts to break the impasse are continuing.
Featured image from OpenArt, chart from TradingView.com
