Coinbase withdrew support from the bill after seeing that it would ban crypto companies from paying interest on idle stablecoin balances.
The Senate Banking Committee postponed a markup hearing for the legislation late Wednesday after Coinbase pulled its support for the bill.
Galaxy Research says illicit finance provisions in the Senate Banking draft go far beyond the House’s Clarity Act.
The bill seeks to bar digital asset providers from paying interest just for holding a stablecoin, but would allow activity-based rewards.
Coinbase may withdraw its support from the market structure bill if it imposes broader limits on stablecoin rewards, Bloomberg reported.