The U.S. Senate Banking Committee postponed a scheduled Thursday discussion of draft legislation that would create a regulatory framework for digital-asset markets, hours after Coinbase CEO Brian Armstrong publicly objected to the bill.

Hearing delayed after Coinbase intervention

Chairman Tim Scott said the postponement was a temporary pause as negotiations continue.

Scott said in a statement:

“I’ve spoken with leaders across the bitcoin industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.”

What the draft bill would do

The legislation, unveiled Monday, aims to define when tokens are securities, commodities, or otherwise.

It would also hand policing of spot digital-asset markets to the Commodity Futures Trading Commission.

Armstrong: ‘We’d rather have no bill’

Armstrong said Coinbase could not support the proposal in its current form and argued it had “too many issues,” including a de facto ban on tokenized equities, an erosion of CFTC authority, and draft amendments that would “kill rewards on stablecoins.”

Armstrong wrote on X:

“We’d rather have no bill than a bad bill.”

He added he was “quite optimistic” a better outcome could be reached with continued effort.

Stablecoin rewards provision

Reuters reported the bill would prohibit companies from paying interest to consumers solely for holding a stablecoin.

It would still allow rewards or incentives tied to certain activities, such as sending a payment or participating in a loyalty program.

Coinbase has been a key stakeholder in negotiations and donated millions to PACs backing pro-bitcoin candidates in 2024.