The post Trump’s ‘Very Soon’ Crypto Bill Meets Congressional Gridlock appeared on BitcoinEthereumNews.com. President Donald Trump declared at the World EconomicThe post Trump’s ‘Very Soon’ Crypto Bill Meets Congressional Gridlock appeared on BitcoinEthereumNews.com. President Donald Trump declared at the World Economic

Trump’s ‘Very Soon’ Crypto Bill Meets Congressional Gridlock

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.

Sponsored

Sponsored

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.

Banking Committee Delayed, Agriculture Committee Moves Forward

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.

Sponsored

Sponsored

The Core Conflict: Stablecoin Yield

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.”

White House Fires Back at Coinbase

The White House responded sharply. Patrick Witt, executive director of Trump’s digital assets council, publicly criticized Armstrong’s stance.

Sponsored

Sponsored

He warned that if crypto industry players obstruct the bill’s passage now, they would be “fumbling the ball” with potentially disastrous consequences.

Lawmakers Fear Falling Behind

In interviews with Fox Business, lawmakers expressed growing frustration over the stalled legislation. Sen. Cynthia Lummis (R-WY), a leading crypto advocate who retires next year, expressed disappointment: “I feel a little bit like Flat Stanley after he got run over by the Mack Truck. I have 11 more months to work on this and get it done.”

Blockchain Association CEO Peter Smith warned of severe consequences: “If this doesn’t pass now—and it’s been worked on already for about a year-and-a-half—that will result in a significant delay after the midterms. This means, realistically, two more years of delay.”

Rep. William Timmons (R-SC) emphasized the economic stakes: “Tens of billions of dollars will come back to the US if Congress establishes a good framework. If not, everything related to crypto may go overseas.”

Sponsored

Sponsored

While lawmakers deliberate, markets are already advancing. The New York Stock Exchange announced plans to launch a blockchain-based tokenized securities trading platform featuring instant settlement and 24/7 operations.

Sen. Thom Tillis (R-NC) noted the urgency: “If we want to continue to be the gold standard for worldwide banking, then we also have to get crypto right because it is, no question, a part of the future of top-tier banking systems.”

What’s Next

The battle lines are clear. The Trump administration wants swift passage, Coinbase treats stablecoin yield restrictions as a red line, and banking lobbyists demand those restrictions remain.

The Agriculture Committee’s bill focuses on CFTC jurisdiction over digital commodity spot markets and doesn’t directly address the stablecoin yield issue, suggesting the Jan. 27 markup will proceed. However, a complete market structure framework requires the Banking Committee’s bill to pass and merge with it.

The resolution of the Coinbase-banking lobby standoff over stablecoin yields remains the critical variable. Despite White House pressure, Armstrong shows no signs of backing down.

Source: https://beincrypto.com/trumps-very-soon-crypto-bill-congress-gridlock/

Market Opportunity
OFFICIAL TRUMP Logo
OFFICIAL TRUMP Price(TRUMP)
$4.883
$4.883$4.883
+0.49%
USD
OFFICIAL TRUMP (TRUMP) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
‘KPop Demon Hunters’ Gets ‘Golden’ Ticket With 2 Nominations

‘KPop Demon Hunters’ Gets ‘Golden’ Ticket With 2 Nominations

The post ‘KPop Demon Hunters’ Gets ‘Golden’ Ticket With 2 Nominations appeared on BitcoinEthereumNews.com. Mira (voice of May Hong), Rumi (Arden Cho) and Zoey (
Share
BitcoinEthereumNews2026/01/22 23:28
Tron Founder Justin Sun Invests $8M in River’s Stablecoin Abstraction Technology

Tron Founder Justin Sun Invests $8M in River’s Stablecoin Abstraction Technology

Justin Sun commits $8 million to River for stablecoin abstraction deployment across Tron ecosystem, including SUN pools and JustLend integration, as RIVER token
Share
Coinstats2026/01/22 22:59