Why Is the biggest bitcoin company in the United States attempting to stop a Pro-Crypto Bill from being passed?

Bitcoin and a few of its allies are constantly lobbying Congress to stop bitcoin policy from being passed in a solo act, a strategic maneuver that is causing friction in the tight-knit world of crypto policy as one such bill draws near a floor vote in the Senate, according to sources with knowledge of the matter. &nbsp,

Bitcoin, but, disputes that it interferes with bitcoin policy and maintains that it is totally supportive of the draft bill, implying that any perceived interference is caused by political differences rather than political strategy.

Stablecoin bills currently being considered by Congress would give issuers of stablecoins, which are digital assets that are exchangeable for US dollars and enable bitcoin traders to enter and exit positions without having to pay instantly in dollars. The costs would be the first to formally allow a fundamental part of the crypto business. Cryptocurrencies are a crucial link between conventional financial markets and bitcoin. &nbsp,

The passage of bitcoin legislation has been a major priority for the industry for months, and equal bitcoin bills have already passed important council votes in the Senate and House. These bills are currently on the verge of full floor votes, and they are expected to pass frequently with bipartisan support. According to sources with knowledge of the situation, the Senate is considering moving first and plans to ground vote on its stablecoin bill, the GENIUS Act, in the next two weeks.

A bitcoin bill would then be submitted for signature to President Donald Trump’s desk after it had been passed through both legislative chambers. The leader has recently stated that he is willing to pass the legislation as soon as possible.

Coinbase is attempting to stop these cryptocurrency expenses from getting ground votes, according to sources with knowledge of the situation, but in private conferences with lawmakers, according to According to the sources, Silicon Valley venture large Andreessen Horowitz is assisting the business in that endeavor.

Why would the most well-known crypto company in the United States demand that Congress never pass the most well-known piece of pro-crypto legislation actually submitted to Congress? According to sources, the problem has nothing to do with the bill’s content, which Coinbase and its allies firmly support, but rather has to do with social math. &nbsp,

A stablecoin-focused expenses and a marketplace framework bill known as “FIT21,” which would essentially allow the rest of the industry, are significant pieces of crypto legislation currently being considered by Congress. With the intention to have both bills signed into law by August, Congressional leadership has indicated that it intends to go bitcoin policy first, followed by business structure policy shortly thereafter. &nbsp,

However, Coinbase has grown concerned that Capitol Hill may not have much kindness for two crypto-focused votes because it primarily needs industry structure legislation passed for its business model to be officially validated. The company now demands that both bills be combined, and that as soon as possible, a single jumbo crypto bill be introduced on the Senate and House floors.

They believe there might not be enough interest, appetite, or time left to also do market structure, according to a source with knowledge of the company’s thinking, according to . They “absolutely want to make sure market structure is implemented”

According to the source, Coinbase’s concern was likely made worse by recent lawsuits brought against the business for alleged securities violations. The SEC has dismissed federal charges against the crypto exchange under the Trump administration, but recent state-level lawsuits are raising the issue once more. Given that the bill would finally resolve issues relating to the securities status of most crypto assets, Coinbase is likely to double down on its desire to hold off on votes on crypto-related legislation until market structure is included, the D. C. insider added.

A spokesperson for Coinbase told that while working with the company to enact legislation to stop the adoption of stablecoin, it would be more efficient and effective to combine such bills with market structures. Coinbase would respect any decisions lawmakers made regarding how to best pass crypto-related legislation, according to the spokesperson.

According to Kara Calvert, Coinbase’s vice president of US policy, “every bipartisan step toward regulatory clarity is good for both crypto and America.” She said,” But the laws governing the market structure and the stablecoin laws are two sides of the same coin, just like the quarter in my pocket.”

While the company is” sympathetic” to putting off votes on stablecoin legislation in the interest of passing both crypto bills and cares more about the passage of a market structure bill, a source with knowledge of Andreessen Horowitz’s political strategy told that the company has not been actively pushing lawmakers to adopt this approach. Andreessen Horowitz’s representative declined to comment on this story. &nbsp,

However, Coinbase’s plan has the drawback of taking months to get market structure legislation approved in both chambers of Congress before being incorporated into existing stablecoin legislation. Sen. Kirsten Gillibrand (D-NY), one of the key sponsors of both bills, has recently stated that passing market structure legislation, given its scope, will be a particularly difficult task that will likely take longer than five months. &nbsp,

For these reasons, prominent players in crypto policy have expressed resentment and annoyance over Coinbase’s strategy. They argue that Washington currently has an unprecedented level of political capital and should use it to leverage it to win a significant victory. According to them, passing the stablecoin legislation would likely spur other initiatives on, and it would also open the door for other objectives, such as the planned IPO of American stablecoin issuer Circle. &nbsp, &nbsp,

Further, a number of political squabs involving ongoing overseas wars, growing tariff-related tensions with China, or a potential recession could turn Congress ‘ attention away from crypto indefinitely. So why not pass a favorable law right away, when the way is open?

One irritated crypto policy player remarked,” Just take the win.” Coinbase’s strategy was” just take the win.” &nbsp,

The conflict has led to an unlikely scenario on Capitol Hill, where the majority of crypto companies are actively lobbying lawmakers to pass stablecoin bills as soon as possible and a small group of the industry’s most powerful political players are urging the same lawmakers to do the opposite. &nbsp,

Coinbase and Andreessen Horowitz have heavily invested in well-connected policy teams, including one of the main backers of the crypto super PAC colossus Fairshake. The companies appear to have made significant strides on the issue despite being significantly outnumbered in the industry in their position regarding stablecoin legislation. Rep. French Hill (R-AR ), for example, is opposed to Coinbase’s position and wants to wait until stablecoin legislation is combined with market structure, according to sources with knowledge of the lawmaker’s thinking. &nbsp,

A Rep. Hill spokesman told that” Both bills are necessary to clarify the digital market ecosystem. We continue to work with members in concert to determine the best legislative strategy to get both bills passed through Congress and the president’s desk.

The intra-industry dispute over stablecoin legislation, which has been bubbling under the surface for a while, is now coming to an end with floor votes looming. Next week, the Digital Chamber, a well-known crypto lobbying organization based in Washington, will fly out representatives of at least 40 of its member companies to Washington to press lawmakers in person to reject Coinbase’s requests and pass stablecoin legislation right away.

The CEO of Digital Chamber, Cody Carbone, stated to ,” The moment has come and there is no need to wait.” By passing the stablecoin bill and restraining that leadership in the U.S. before it moves to Beijing, Brussels, or Dubai,” Congress can notch a bipartisan win today.”