Coinbase threatens to drop its support for cryptocurrency legislation

A request from Coinbase.

According to a Bloomberg report published late on January 12, 2026, senior Coinbase executives privately communicated this position to lawmakers and industry allies, describing the current legislative process as “ stalled ” and increasingly out of touch with the realities of the digital asset market.

The threat — described by sources as “ serious and credible ” — comes at a crucial time with the 119th Congress in session and a cryptocurrency-friendly administration, with many in the industry expecting rapid progress toward long-awaited frameworks.

Instead, bipartisan efforts surrounding the Stablecoin Payment Transparency Act and the Digital Asset Market Structure Act have stalled due to power struggles between the House Financial Services and Agriculture Committees , as well as persistent Democratic concerns about consumer protection and illicit financial risks.

Pressure on US VASPs

Clearly define the regulatory authority between the SEC and CFTC , particularly with regard to decentralized finance (DeFi) protocols and tokenized physical assets (RWA).

A viable path forward for stablecoin issuers —including non-bank issuers—to operate under federal oversight without being forced to adhere to the narrow bank licensing model.

Secure areas for self-governance, staking, and decentralized governance without automatically classifying tokens as securities.

Time pressure — Coinbase executives reportedly stressed that further delays would force the company to reallocate lobbying resources and potentially shift its strategic focus to international markets (e.g., Europe under MiCA, Singapore, UAE) where the regulatory environment is more predictable.

Legal implications for the region.

If Coinbase makes this move, the impact could be enormous. Coinbase is one of the most active voices in the cryptocurrency space in Washington, funding advocacy groups, mobilizing users, and acting as a bridge between policymakers and the entire industry.

Withdrawing support could weaken the momentum of pending bills, encourage regulators to prioritize enforcement over legislation, and fragment industry lobbying efforts.

It could also signal to other cryptocurrency companies that compliance and cooperation alone are no longer sufficient strategies, potentially hardening the industry's attitude toward regulation.

core contradiction

Policymakers want to control and protect consumers, while the industry needs clear boundaries and certainty in its operations. Coinbase's warning suggests the balance may be tipping too much toward control, without sufficient acknowledgment of how businesses actually operate.

This conflict cannot be resolved solely through law enforcement—and Coinbase appears unwilling to continue supporting laws that fail to acknowledge that reality.

Disclaimer: The information presented in this article is the author's personal opinion in the field of cryptocurrency. This is not financial or investment advice. All investment decisions should be based on careful consideration of your personal portfolio and risk tolerance. The views expressed in this article do not represent the official stance of the platform. We recommend that readers conduct their own research and consult with experts before making any investment decisions.

Compiled and analyzed by HCCVenture

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