Senate Banking’s long-anticipated markup of the Digital Asset Market Clarity Act of 2025 (H.R. 3633) was shelved at the last minute after the largest U.S. crypto exchange publicly walked away from the draft, throwing the vote count into doubt. Coinbase denounced the bill as “worse than the status quo,” triggering an unexpected rift within the digital-asset industry and undercutting the bipartisan support Chairman Tim Scott (R-SC) needed to advance the legislation. With key Democrats still opposed and some Republicans raising new concerns, Scott opted to pull the plug rather than force a shaky vote.
Behind the scenes, momentum had been building around an issue IBAT has raised for months: stablecoin reward programs that function like deposit accounts without the accompanying regulatory safeguards. Senators from both parties were preparing amendments to curb yield-bearing stablecoins amid growing concern about deposit flight and unregulated competition with insured community banks. With the industry split and IBAT-aligned concerns gaining traction, the committee hit pause.
On Friday night, several news outlets reported that the White House was planning to withdraw its support for the bill in response to Coinbase’s opposition. Coinbase CEO Brian Armstrong later responded on the X platform, saying the exchange remained at the negotiating table and was seeking tradeoffs with community banks in exchange for compromises on the yield/rewards issue.
While a new markup date has not been set, the delay creates an opening to push for clearer, stronger guardrails that protect community banks and the customers they serve.
