Why America’s Biggest Crypto Company Is Trying to Stop a Pro-Crypto Bill From Passing

Coinbase and a handful of allies are actively lobbying Congress to prevent stablecoin legislation from passing in a standalone bill, a strategic move that is causing friction in the tight-knit world of crypto policy as one such bill nears a floor vote in the Senate, sources familiar with the matter told Stablecoin bills currently before Congress would provide a path to legality for issuers of stablecoins—digital assets pegged to the U.S. dollar that allow crypto traders to enter and exit positions without the need to access dollars directly. The bills would be the first to effectively legalize a foundational component of the crypto industry. Stablecoins serve as a key connector between crypto and traditional financial markets. Passage of stablecoin legislation has been a top industry priority for months, and parallel stablecoin bills have already passed key committee votes in the saidDecrypt. Why would America’s most prominent crypto company urge lawmakers not to pass the most high profile piece of pro-crypto legislation ever put before Congress? The issue has nothing to do with the contents of the bill, which Coinbase and its allies fully support, sources say—but everything to do with political calculus. At the moment, Congress is considering If we only do stablecoin, they think there might not be enough interest or appetite or time left to also do market structure.But Coinbase, which chiefly needs market structure legislation passed for its business model to be legally validated, has grown anxious there may not be enough goodwill on Capitol Hill for two crypto-focused votes. Now, the company wants both bills rolled into one, and for a single jumbo crypto bill to hit the Senate and House floors as soon as possible.“If we only do stablecoin, they think there might not be enough interest or appetite or time left to also do market structure,” one source familiar with the company’s thinking told Coinbase’s concern was likely exacerbated by new A Coinbase spokesperson told —Another source familiar with Andreessen Horowitz’s political strategy told The problem with Coinbase’s plan, though, is that waiting for market structure legislation to be ironed out in both chambers of Congress, and then rolled into existing stablecoin legislation, could take months. Key sponsors of both bills, including Sen. Kirsten Gillibrand (D-NY), have recently Just take the win.For those reasons, key players in crypto policy have expressed confusion and exasperation at Coinbase’s strategy. They argue the industry currently enjoys an unprecedented amount of political capital in Washington, and should use it now to achieve a major victory. Passing stablecoin legislation would likely increase momentum for other initiatives, they say, and would also immediately pave the way for other goals, like American stablecoin issuer Circle’s Further, any number of political controversies involving ongoing overseas wars, mounting tariff-related tensions with China, or a potential recession could rip Congress’ attention away from crypto indefinitely. So why not pass a favorable law now, when the path is clear?“Just take the win,” one frustrated crypto policy player said of Coinbase’s approach. The disagreement has created an unlikely scenario on Capitol Hill, in which the vast majority of crypto companies are actively lobbying lawmakers to pass stablecoin bills as soon as possible, and a small cohort of the industry’s most powerful political players are urging the same lawmakers to do the opposite. Coinbase and Andreessen Horowitz are among the principal backers of crypto super PAC colossus Representatives for Rep. Hill did not immediately respond to With floor votes looming, the intra-industry skirmish on stablecoin legislation—which has bubbled under the surface for some weeks—is now coming to a head. Next week, the Digital Chamber, a prominent D.C.-based crypto lobbying group, plans to fly out representatives of at least 40 of its member companies to Washington, to urge lawmakers in-person to defy Coinbase’s requests and pass stablecoin legislation immediately.“The moment has been here and there is no need to wait,” Cody Carbone, the Digital Chamber’s CEO, told