Coinbase CEO Brian Armstrong announced plans to reschedule a pivotal cryptocurrency regulatory vote after it was abruptly canceled on January 15, 2026, citing ongoing disagreements between major financial institutions and crypto firms over consumer rewards eligibility. The delay underscores deepening rifts in the digital asset policy landscape.
- The January 15, 2026, vote on the Digital Asset Consumer Protection Act was canceled at the last minute.
- 12 major banks, including JPMorgan Chase and Bank of America, oppose allowing crypto firms to offer consumer rewards.
- 17 crypto firms, including Coinbase (COIN), Ripple (XRP), and Chainlink (LINK), support the current draft.
- Internal polling shows 63% of surveyed financial institutions favor restricting rewards to federally insured banks.
- COIN shares dropped 4.7% in after-hours trading following the cancellation.
- A revised draft with a three-year sunset clause is expected by January 22, 2026.
The proposed rescheduling of the key legislative vote comes after a last-minute cancellation on January 15, 2026, disrupting efforts to finalize a comprehensive crypto regulatory framework. The vote, which had been expected to pass through the House Financial Services Committee, aimed to clarify which financial entities—traditional banks or crypto-native firms—can offer consumer rewards tied to digital asset holdings. The core dispute centers on Section 4.2 of the Digital Asset Consumer Protection Act of 2025, which defines eligible reward providers. As of January 14, 2026, 12 major U.S. banks, including JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC), had opposed the current draft, citing risks of regulatory arbitrage and consumer confusion. In contrast, 17 crypto firms, led by Coinbase (COIN), Ripple (XRP), and Chainlink (LINK), urged passage to level the playing field. The coalition of banks argues that allowing crypto firms to issue rewards could undermine existing deposit insurance mechanisms, while Coinbase maintains that the current framework disproportionately favors traditional institutions. According to internal polling data shared during closed-door meetings, 63% of the 300+ financial firms surveyed favor a modified version that restricts rewards to federally insured banks. The cancellation has triggered immediate market reactions: COIN shares dipped 4.7% in after-hours trading, while BAC and JPM saw slight gains of 0.8% and 1.1%, respectively. The uncertainty has also delayed two planned pilot programs in California and Texas involving crypto-backed savings accounts, affecting an estimated 1.2 million consumers. Coinbase CEO Brian Armstrong confirmed in a statement that the company is working with bipartisan lawmakers to reschedule the vote by early February, with a revised draft expected to be released on January 22. The revised bill may include a three-year sunset clause for crypto reward eligibility, pending further risk assessments.