Banking with Interest The Crypto Market Structure Bill Got Shelved. What's Next?
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Jan 21, 2026 Brendan Pedersen, a senior policy reporter at Punchbowl News, dives into the recent postponement of the crypto market structure bill due to industry pressures and opposition from Coinbase. He explains how disputes over stablecoin yields hijacked negotiations, revealing political dynamics at play. Brendan discusses how both parties maneuvered in light of Coinbase's public push. Also, he assesses the implications of delays and the potential for new negotiations, while tying the political landscape to community banking reforms and Trump's influential role.
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Stablecoin Yield Killed The Markup
- Stablecoin yield emerged as the decisive issue that sank the crypto market-structure markup despite progress on classification and DeFi rules.
- Banking concerns about deposits and incumbency advantage redirected focus from market structure to yield fights.
Genius Act Left A Deliberate Loophole
- The Genius Act limited issuers from directly paying yield but left broader crypto rewards open, creating ambiguity to revisit in market-structure talks.
- That intentional openness and political choice made reopening yield a predictable and fraught next battle.
Banks Have A Political Edge On The Hill
- Banks wield deep political advantage because every senator knows and can showcase local bankers and their community role.
- That relational power helps banks elevate concerns like deposit flight into potent political arguments.