The future of crypto regulation in the United States is once again in focus as Sen. Kirsten Gillibrand (D–New York) expressed optimism that the Senate Agriculture Committee will advance its updated cryptocurrency market structure bill, even though bipartisan agreement has not yet been reached.
In an exclusive interview, Gillibrand stated she is “very optimistic” about progress, signaling momentum for clearer rules around digital commodities like Bitcoin. The committee’s markup, originally scheduled for January 27, has been postponed to January 29 due to severe winter weather.
⚖️ Regulatory Tensions Rise
While the Agriculture Committee moves forward, the Senate Banking Committee has hit resistance. Its own crypto bill, originally set for a January 15 markup, was delayed following strong opposition from the crypto industry — most notably Coinbase.
Coinbase CEO Brian Armstrong publicly criticized the Banking Committee’s draft, calling it “materially worse than the current status quo.” One major concern is proposed language that could restrict stablecoin rewards, potentially giving traditional banks an unfair advantage by limiting competition from crypto-native companies.
🏦 Stablecoins at the Center of the Debate
Under the Banking Committee’s draft, stablecoin issuers would be prohibited from offering rewards for simply holding stablecoins. Instead, rewards would only be allowed through transactions or structured reward programs.
Banks support these restrictions, arguing that interest-bearing stablecoins could cause a flight of deposits from insured banks. Crypto firms like Coinbase strongly disagree, saying such rules would stifle innovation and reduce consumer choice.
🔍 What This Means for Crypto Investors
This regulatory tug-of-war highlights a key moment for the crypto industry:
Clearer rules could bring institutional confidence
Overregulation could limit innovation and user benefits
Stablecoins remain a critical battleground between banks and crypto platforms
As Congress debates the balance between protection and progress, the outcome could shape the next phase of crypto adoption in the US.
📌 Bottom line: Regulation is coming — but how it arrives will matter just as much as when it arrives.
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