"Coinbase CEO Brian Armstrong's abrupt decision to pull his support for the draft of a landmark crypto bill has jolted Washington, D.C. After working in political lockstep for more than a year, the crypto industry is now facing a rupture as key leaders-including the influential venture capital firm Andreessen Horowitz (a16z)-express support for the same bill after the Senate Banking Committee delayed a key vote last week."
"Meanwhile, another Senate body, the Agriculture Committee, is preparing to release its own draft text on Wednesday, raising the possibility that the emerging schism could grow wider as the bill moves forward. If this happens, the industry risks alienating the coalition of lawmakers and White House figures who have lent it critical political support, and potentially seeing the legislation it has long sought slip out of reach."
"Ahead of the 2024 election, the crypto industry spent nearly $250 million to back sympathetic candidates, with Coinbase and a16z crypto emerging as the two most powerful voices. The industry helped Trump sweep into office a year ago and, since then, has notched win after win, from the passage of stablecoin legislation to the appointment of crypto-friendly heads of regulatory agencies."
Brian Armstrong abruptly withdrew support for a draft crypto bill, producing a sharp split among major industry leaders who had coordinated political strategy for over a year. Key firms including Coinbase and Andreessen Horowitz now signal divergent positions after the Senate Banking Committee delayed a crucial vote. The Senate Agriculture Committee is preparing a separate draft, increasing the chance of competing texts and widening the schism. The industry risks alienating a coalition of lawmakers and White House allies whose backing enabled prior regulatory wins. The sector previously spent roughly $250 million on 2024 election efforts and had appeared publicly unified on stablecoin and regulatory objectives.
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