Bipartisan Crypto Bill 90% Done, Senate Wrangling Over DeFi Delays Clarity

Coinbase Global Inc. (NASDAQ: COIN) CEO Brian Armstrong has doubled down on his optimism regarding U.S. cryptocurrency legislation, asserting that bipartisan support for key bills is "90% there" and could be finalized by year-end, according to a Benzinga article. Speaking amid a government shutdown, Armstrong emphasized that both Senate Democrats and Republicans are collaborating to resolve remaining disagreements, particularly around decentralized finance (DeFi) frameworks and stablecoin regulations. His remarks align with White House Crypto and AI Czar David Sacks, who called the current momentum for the CLARITY Act—an initiative to split crypto oversight between the SEC and CFTC—"an excellent position" for passage, the Benzinga article also noted.

The CLARITY Act, which cleared the House, now faces Senate debate, while the GENIUS Act—regulating dollar-pegged stablecoins like Tether (CRYPTO: USDT)—has already been signed into law, the Benzinga coverage added. However, political tensions persist. Senator Elizabeth Warren (D-Mass.) and others have raised concerns about potential conflicts of interest, particularly with President Donald Trump-backed crypto ventures. Meanwhile, Senator Thom Tillis (R-N.C.) warned that Congress must act by early 2026 to avoid legislative gridlock from midterm elections, stressing the urgency of bills like FIT21 to provide clarity for digital assets, according to a Coinotag report.

Coinbase's strategic moves extend beyond lobbying. The exchange recently partnered with Citi to explore stablecoin-driven digital payments for institutional clients, framing crypto and stablecoins as "tools to update the global financial system," according to a TradingView post. Citi's global payment networks, combined with Coinbase's infrastructure, aim to simplify cross-border transactions and expand access to digital assets. The collaboration, which includes fiat-to-stablecoin conversions, reflects Coinbase's broader push into payments and institutional services, a development detailed in a TradingView article.

Stablecoins themselves are reshaping the crypto landscape. Market data shows stablecoin transactions surged to $4 trillion by August 2025, with retail adoption growing 125% year-over-year, according to a Coinotag analysis. Venture capital firm Andreessen Horowitz (a16z) highlighted stablecoins as a "global macroeconomic force," noting their role in enabling fast, low-cost remittances and institutional adoption, as reported in a Cointelegraph report. Western Union's recent pilot program leveraging stablecoins for cross-border transfers underscores this trend, aiming to cut costs by up to 50% and serve 150 million users, according to a Coinotag report.

Despite regulatory headwinds, Coinbase's stock has rallied nearly 30% year-to-date, trading at $322.71 as of October 27, the Benzinga article noted. The company's shares edged higher following the Citi announcement, reflecting investor confidence in its expanding digital asset ecosystem. Yet challenges remain: partisan divides over DeFi regulation and token classifications continue to stall comprehensive reforms, a point explored in a Coinotag analysis. Armstrong's vision of fully on-chain startups—where incorporation, fundraising, and public trading occur via blockchain—further underscores the sector's transformative potential, as described in a Shib News article.

As the U.S. races to establish a regulatory framework, global competitors like the EU's MiCA regulation loom large, and with stablecoins bridging traditional and digital finance while political deadlines tighten, the crypto industry's trajectory hinges on balancing innovation with oversight.