Written by: Veronica Irwin, unchainedcrypto
Translated by: Sean, Jinse Finance
In the past few months, President Trump has been urging Congress to pass a tax bill instead of several small bills to address budget issues. He called it a "big and beautiful bill".
Coinbase seems to be imitating Trump, as it is also trying to pass all crypto legislation at once.
According to six sources, Coinbase's lobbyists and executives are pushing Congress to draft a comprehensive regulatory framework for most crypto assets while passing stablecoin legislation.
The stablecoin bill will cover key issues such as which agency regulates issuers, reporting and audit requirements, and clearly define the qualified collateral needed for blockchain-issued digital dollars. However, the market structure legislation is more complex, establishing a set of rules to clarify when tokens are considered commodities or securities, and how crypto exchanges like Coinbase should register with regulatory bodies such as the SEC and CFTC. For Coinbase, the market structure bill is crucial, as its platform sells over 200 digital assets and offers services like staking and custody.
Kara Calvert, Coinbase's Vice President of US Policy, stated: "The crypto market is a complete system that needs a comprehensive solution. We believe that when legislation becomes law, it must cover all these different areas." She emphasized that Coinbase is not pushing this legislative plan in isolation, adding: "Ultimately, we want all relevant laws to take effect simultaneously or nearly simultaneously to prevent regulatory gaps in the market."
However, due to the complexity of the market structure bill, many industry insiders are concerned that Coinbase might be taking a high-risk strategy and missing important industry opportunities. A lobbyist critical of Coinbase's strategy said: "Most people think this is a bad idea. We should first achieve a 'low-hanging fruit' in the stablecoin area before tackling the difficult market structure legislation."
Stablecoin Legislation Progress Leads
Currently, the US Congress has not passed any laws specifically targeting cryptocurrencies, but legislation around the $233 billion stablecoin market is much closer to implementation compared to regulating the $2.97 trillion overall crypto market.
The Senate version of the stablecoin bill, the GENIUS Act, was passed by the Senate Banking Committee two weeks ago and is ready for a full Senate vote. The House version of the stablecoin bill has not made the same progress, with only two legislative drafts published so far. However, a congressional staff member from both the Senate and House Financial Committees revealed that the committees are working together to bridge the bill differences, and the House stablecoin bill may catch up soon.
Political pressure is also accelerating the legislative process. President Donald Trump stated in early March that he wants to receive a stablecoin bill by August, and Bo Hines, executive director of the Presidential Digital Assets Advisory Committee, said last week that the stablecoin bill might be on the President's desk within two months.
Additionally, Senator Tim Scott from South Carolina, Representative French Hill from Arkansas, Senator John Boozman from Arkansas, and Representative Glenn (GT) Thompson from Pennsylvania held a press conference in February with David Sacks, the White House AI & Cryptocurrency Policy Lead, promising to expedite legislation. As the Chairman of the Senate Banking Committee, Senator Scott controls the progress of the Senate stablecoin bill. He promised at the press conference to pass a key crypto legislation within the first 100 days of the Trump administration, with the stablecoin bill being the most likely to pass first.
Key Issues in Market Structure Legislation
In contrast, the current congressional session has not yet introduced any market structure bills. However, lobbyists interviewed by Unchained generally expect that the "Financial Innovation and Technology for the 21st Century Act" (FIT21) from the previous Congress might become the starting point for new legislation, meaning its advancement will be faster than a completely new proposal. Notably, FIT21 was the first digital asset bill passed by a full House vote, which helps push forward new market structure legislation.
Kara Calvert, Coinbase's Vice President of US Policy, agrees with this view: "Market structure legislation is not starting from scratch. Last year, FIT21 was supported by 71 Democratic lawmakers and almost all Republican lawmakers."
However, key details still need further discussion, with differing opinions within the industry, and various parties are pressuring Congress to make significant improvements in the jurisdictional division of tokens between the CFTC and SEC. Two congressional staff members told Unchained that drafting the market structure bill will take much longer than the stablecoin bill.
Why Coinbase's Actions Are Pending
Currently, stablecoin legislation remains ahead and most likely to pass first.
A Senate staff member explained in an email last week that Senate Banking Committee Chairman Tim Scott needs to approve any crypto bill submitted to the full Senate vote, and his priority is to advance stablecoin legislation before addressing the market structure bill.
In contrast, Scott's counterpart in the House - House Financial Services Committee Chairman French Hill - is more flexible about the timing of both bills, focusing on passing both bills as soon as possible. The committee's Deputy Communications Director, Brooke Nethercott, stated: "French's goal is to successfully send both bills to the President for signature. President Trump has openly stated that he wants to review the stablecoin bill soon. Both stablecoin and market structure bills are priorities."
Currently, the Trump administration has not clearly indicated which bill should be prioritized. A senior White House official said: "The White House is excited about the legislative prospects in the cryptocurrency and digital assets space. At this stage, we hope the legislative process can naturally progress and improve."
If the stablecoin legislation does pass first, Calvert says Coinbase will not obstruct this process. She noted: "Our goal has always been to achieve incremental victories and move the legislative process forward." She also mentioned that different companies in the industry have different focuses, with some enterprises potentially more concerned about stablecoins, so various parties' interests and demands differ.
Moreover, Coinbase will not completely miss out. In 2023, Coinbase invested in Circle Financial Ltd., the issuer of the USDC stablecoin, so clearer stablecoin regulatory rules will directly benefit Coinbase.
However, as the largest US crypto exchange, Coinbase's true goal is still the market structure bill. The company will continue lobbying to ensure the industry does not "miss the forest for the trees". Calvert emphasized: "We believe that when legislation is signed into law, we cannot only solve part of the market's problems while leaving huge regulatory gaps."
