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.
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.
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."