The drawn-out wait for comprehensive cryptocurrency regulation in the United States may soon end. Coinbase CEO Brian Armstrong said this week that bipartisan talks on Capitol Hill have reached their most advanced stage yet, predicting that a full market structure framework could pass Congress before the year wraps up.
Even as Washington’s political gridlock deepens—now stretching past 30 days of government shutdown—momentum around digital asset legislation is quietly accelerating. Armstrong, speaking after a series of meetings with lawmakers, said discussions between Democrats and Republicans are “nearing completion,” adding that both parties are broadly aligned on most of the bill’s provisions.
According to Armstrong, only a handful of technical and definitional details remain unresolved. Lawmakers, he said, are united by a shared desire to both safeguard innovation and provide clarity for companies operating in the crypto sector. “It’s the closest the U.S. has ever been to a clear, comprehensive crypto law,” he told reporters.
DC may be shut down, but momentum for market structure clarity is at an all-time high. I sat down with Senate Democrats and Republicans who want to get this done – we're 90% there.
Both sides are working hard to figure out the final 10%, and we're getting close.@Coinbase is… pic.twitter.com/EI5sShFvKA
— Brian Armstrong (@brian_armstrong) October 23, 2025
The Final Hurdles: DeFi and Stablecoins
Behind the remaining negotiations lie two contentious issues—how to handle decentralized finance (DeFi) and the treatment of stablecoin rewards. Coinbase has urged Congress to draw a clear line between decentralized protocols and centralized intermediaries, arguing that applying identical regulatory rules to both would stifle open-source innovation.
Armstrong has also taken aim at what he describes as pressure from major banks attempting to curb the growth of stablecoin-based yield products. He cited the GENIUS Act, which reaffirmed the legality of stablecoin reward programs earlier this year, saying traditional financial institutions are now “trying to claw back” that progress.
Toward a Senate Committee Vote
Despite partisan clashes elsewhere in Washington, both chambers of Congress appear committed to advancing the legislation. Armstrong expressed optimism that the bill will make it through its Senate committee stage by Thanksgiving, positioning it for a potential full vote before the end of 2025.
If the timeline holds, the U.S. could enter 2026 with its first nationwide framework governing crypto custody, trading, and stablecoin operations—a move expected to unlock a new wave of institutional participation in the sector.
The anticipation also coincides with broader market speculation surrounding the Federal Reserve’s upcoming meeting on October 29, which may influence liquidity conditions across both traditional and digital markets.
Coinbase’s Push for Balanced Oversight
Paul Grewal, Coinbase’s Chief Legal Officer, reinforced the exchange’s stance in a statement on X, writing, “If you want to protect people, regulate centralized exchanges like us—not DeFi software.” That view underscores Coinbase’s broader message: clear rules are necessary, but they must distinguish between platforms that hold user funds and those that simply provide open access to blockchain technology.
Armstrong’s confident tone reflects a shift in Washington’s approach to digital assets. After years of stalemates and regulatory ambiguity, the political appetite for clarity appears stronger than ever. Whether Congress delivers before year’s end could determine how the U.S. positions itself in the global race for crypto leadership.
