Coinbase, Others Oppose Crypto Bill Over DeFi, SEC Reach and Stablecoin Yield
On Jan. 18, 2026, Coinbase and a number of industry participants turned against a major crypto bill after provisions concerning decentralized finance, the scope of SEC jurisdiction, and yield on stablecoins prompted sharp criticism. Those elements, critics say, could broaden regulator reach, constrain common DeFi primitives, and impose restrictive controls on stablecoin-linked yield products, sparking alarm across exchanges, protocols, and service providers.
The shift complicates the bill's legislative path and increases uncertainty for firms and users. If left unchanged, industry leaders warn the measure could push activity offshore, chill lending and liquidity services, and create legal exposure for platforms and protocols—outcomes that would affect market access, consumer options, and the U.S. role in shaping crypto policy.