Coinbase CEO says key crypto vote can be rescheduled after 11th hour cancellation

Core Viewpoint - The ongoing negotiations around a major crypto bill are facing significant challenges, particularly due to concerns raised by Coinbase CEO Brian Armstrong regarding provisions that could limit the industry's growth and competitiveness [2][4]. Group 1: Legislative Developments - Senators are committed to advancing a major crypto bill despite a recent setback in the committee vote [1]. - The latest version of the bill was released late Monday, but its approval was already uncertain when Armstrong expressed Coinbase's opposition due to concerns over the bill's provisions [2]. - Following Armstrong's tweet, the Banking Chair Tim Scott postponed the hearing, indicating a need for further discussion [3]. Group 2: Industry Concerns - Armstrong highlighted that the new bill included provisions that surprised him, and by the time concerns were identified, it was too late for amendments [4]. - One major point of contention is the bill's restrictions on crypto exchanges offering interest-like rewards on stablecoins, which could impact the competitive landscape between banks and crypto companies [5][6]. - Banks are actively opposing the bill's language, fearing it could lead to significant capital shifts from traditional deposits to stablecoins, potentially resulting in a credit squeeze of up to $1.2 trillion [6][7]. Group 3: Potential for Compromise - There is a belief among some senators that with more time for negotiations, a compromise can be reached that balances innovation in the crypto space with the interests of the banking sector [7][8]. - The need for a compromise is echoed by various stakeholders, emphasizing the importance of allowing innovation while addressing the concerns of traditional financial institutions [8].