Crypto Firms Buoyed by Trump Get Rocked as US Bill Delayed

Core Viewpoint - The optimism in the crypto industry is waning due to the delay of a crucial digital-asset bill in the Senate, which has raised concerns about the regulatory framework for stablecoins and the broader implications for the market [1][3]. Group 1: Legislative Developments - The Senate Banking Committee postponed discussions on the digital-asset bill after Coinbase Global Inc. withdrew its support, primarily due to restrictions on offering yields or rewards on stablecoin holdings [2][5]. - The delay in the bill is seen as a potential setback for the U.S. to establish a clear regulatory framework for digital assets, risking its position as a major hub by 2026 [4]. Group 2: Market Reactions - Following the news of the bill's delay, shares of Coinbase fell by as much as 4%, while Circle Internet Group Inc. and Gemini Space Station Inc. experienced declines of around 5% [5]. - The proposed legislation suggests a ban on paying yields for stablecoins, although some types of rewards may still be permitted, leading to confusion regarding the specifics of what rewards would be allowed [5][7]. Group 3: Industry Implications - Stablecoins are crucial to the crypto ecosystem, with their usage increasing significantly after recent U.S. legislation [3]. - Crypto companies have historically used yields and rewards to incentivize users to hold digital assets, which is now at risk due to the legislative uncertainty [6][7].