Key encryption bill postponed for review, industry's optimistic expectations face a test.

As the much-anticipated cryptocurrency market structure bill has been postponed for debate due to intense debate around stablecoin treatment, the endless optimism pervading the crypto industry in the first year of President Trump's second term is being replaced by anxiety. On Wednesday, hours after Coinbase (COIN.US) withdrew its support for the latest version of the cryptocurrency market structure bill, the U.S. Senate Banking Committee postponed discussion on this highly anticipated bill. The committee chair Tim Scott released a statement saying that the bill would be postponed due to ongoing bipartisan negotiations. However, he did not provide a new date for the discussion. It is reported that one of the clauses strongly opposed by Coinbase and other digital asset companies is the restriction on their ability to provide returns or rewards to customers holding stablecoins on their platform. Coinbase uses the US dollar stablecoin (USDC) held by users on the platform for interest, and then distributes a portion of the interest to users under the guise of "rewards." The potential restrictions on this behavior by the bill will lead to a sharp decrease in Coinbase's stablecoin interest income. Coinbase insists that this is just a "marketing reward," not a "deposit interest." Banks, on the other hand, are concerned that this amounts to "high interest gathering deposits," without being subject to reserve requirements, FDIC insurance, etc., and they also worry that this practice may divert deposits from traditional banks. Ali Redford, Global Head of Policy and Government Affairs at TRM Labs, pointed out, "Stablecoin rewards are at the intersection of payments, savings-like behavior, and market incentives." He added that this also explains why "a narrow technical issue has evolved into a core policy issue during the bill's review process." The latest proposal suggests banning cryptocurrency exchanges from providing rewards related to holding stablecoins, but may allow certain types of rewards. However, Nana Murugesan, former senior executive at Coinbase, said that the wording regarding what rewards are specifically allowed is not clear. He said, "As long as the regulation is unclear, it will be reinterpreted." Furthermore, restrictions on such rewards may put regulated crypto companies in the U.S. at a disadvantage. Murugesan said, "If there are any restrictions, theoretically, it will only put U.S. companies at a disadvantage, while overseas companies continue to provide rewards." Stablecoins are a key pillar in the cryptocurrency field, and their usage has surged since the U.S. passed related regulatory legislation last July. After successfully helping Trump win in the cryptocurrency industry and pushing the stablecoin bill to pass, industry executives are now worried that the stalemate around stablecoin treatment may hinder the U.S. regulatory framework from keeping pace with other markets. Dia Markova, Policy Director at crypto custodial service provider Fireblocks, said, "This delay is worrisome because it may make the U.S. one of the few major digital asset centers in 2026 without clearly defined capital market rulebooks." Coinbase's swift response also indicates how the crypto industry is wielding its newfound influence in Washington. Coinbase CEO and Trump supporter Brian Armstrong World Industries, Inc. posted on X platform saying he was withdrawing his support for the latest version of the bill because "there are too many issues." However, this drew a rebuttal from Senator Cynthia Lummis, a member of the Senate Banking Committee, who said on X platform that the reactions from crypto companies like Coinbase "show that they're just not ready yet."