tl;dr
Coinbase and allies, including Andreessen Horowitz, are lobbying Congress to delay standalone stablecoin legislation to push for a combined bill that includes both stablecoin and broader market structure legislation. Coinbase supports the stablecoin bill but fears passing it alone may reduce momentu...
Coinbase and its allies, including prominent investor Andreessen Horowitz, are actively lobbying Congress to delay standalone stablecoin legislation in favor of combining it with broader market structure bills to achieve comprehensive crypto regulation.
While Coinbase supports the stablecoin bills—which are designed to legalize key crypto assets and enjoy bipartisan support—it fears that passing them independently could diminish momentum for essential market structure legislation needed to legitimize its business model amid ongoing securities lawsuits and regulatory pressures.
This strategic push has caused division within the crypto industry: most companies advocate for the immediate passage of stablecoin bills to capitalize on the current political climate, whereas Coinbase and a small cohort prefer to wait for a combined legislative package.
Key lawmakers like Representative French Hill back Coinbase's approach, hoping to synchronize stablecoin and market structure legislation, while influential lobbying groups such as the Digital Chamber are urging Congress to pass stablecoin legislation without delay to secure a bipartisan win and cement U.S. leadership in crypto innovation.
The stakes are high: stablecoin bills near Senate floor votes and promise to legalize foundational crypto assets pegged to the U.S. dollar, facilitating seamless movement between crypto and traditional finance. However, concerns persist that delaying stablecoin legislation may risk losing political capital and slow progress on pressing regulatory clarity.
Coinbase's insistence on bundling both legislative efforts stems from its urgent need for market structure reform to safeguard its business amid renewed state-level securities lawsuits following federal dismissals. The company argues that combining the bills would be more efficient and effective.
Opponents caution that market structure legislation’s complexity means it could take months to pass, potentially stalling critical stablecoin reforms and jeopardizing momentum during a time of shifting congressional priorities influenced by geopolitical tensions and economic uncertainties.
As floor votes approach, the crypto industry faces a rare public policy rift: the majority lobbying for immediate stablecoin bill passage, and a powerful minority led by Coinbase and some allies pushing for a comprehensive legislative package. The coming weeks will reveal which strategy prevails and how it will shape the future regulatory landscape of the crypto market in the United States.