Coinbase opposition won't stymie U.S. crypto market structure bill, HSBC says

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Coinbase opposition won't stymie U.S. crypto market structure bill, HSBC says The bank argued that legislative momentum remains strong as industry heavyweights prioritize long-term regulatory certainty over unpredictable enforcement. By Will Canny , AI Boost | Edited by Sheldon Reback Jan 28, 2026, 4:17 p.m. Make us preferred on Google Despite Coinbase pushback, crypto market structure bill still on track, HSBC says. (CoinDesk) What to know : HSBC suggested Coinbase may prefer a compromise bill over no legislation at all. With Ripple and Coinbase funding the Fairshake PAC, the report highlighted that significant capital is being deployed to ensure Congressional candidates pass clear statutory rules. The bank envisions a potential path where the Senate Agriculture Committee’s bill passes first, granting the CFTC authority over spot commodities even if SEC-related issues remain unresolved. Coinbase's (COIN) decision to end support for U.S. market structure legislation won't derail the process, investment bank HSBC said, suggesting that while CEO Brian Armstrong prefers no bill over a bad bill, he would probably accept a sensible compromise. The report maintained that a legislative floor is essential to providing the stability required for institutional entry. STORY CONTINUES BELOW Don't miss another story. Subscribe to the State of Crypto Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . "Coinbase withdrawal of support is not a death-knell for U.S. market structure legislation," analysts Daragh Maher and Nishu Singla said in the Tuesday report. At its core, the proposed law is a high-stakes attempt to end the regulation-by-enforcement era that has defined the U.S. crypto landscape for years. By drawing a clear line between the Securities and Exchange Commission's (SEC) authority over securities and the Commodity Futures Trading Commission's (CFTC) oversight of commodities, the bill aims to provide the legal rules that institutional investors, from hedge funds to corporate treasuries, require before entering the market at scale. Earlier this month, Armstrong said Coinbase reversed its support for the bill to protect consumers and prevent the stifling of market competition. The Senate Agriculture Committee delayed its crypto market structure markup to Thursday, citing travel disruptions following a major weekend winter storm. The analysts pointed to a divide in sentiment that favors action: Ripple’s leadership continues to argue that "clarity is always better than chaos." This is bolstered by the massive financial influence of the Fairshake PAC. Furthermore, the analysts noted that advisors believe the current draft, while imperfect, might be more favorable than future iterations under different political administrations. Even if a resolution isn't reached, the analysts expect an incremental victory via the Agriculture Committee’s bill, which would enhance market integrity through CFTC oversight. The bank warned against viewing industry pushback as a dead end, citing the GENIUS Act’s survival through similar legislative hurdles. Bitwise CIO Matt Hougan argued that market structure legislation is vital to codifying the current pro-crypto environment into law. Without it, he warned, the industry remains exposed to shifting administrative priorities, a stance that aligns with HSBC’s outlook. Read more: Crypto faces fork in the road as Clarity Act support wavers, Bitwise says Cryptocurrency Regulations Market Structure Legislation HSBC Coinbase AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Pudgy Penguins: A New Blueprint for Tokenized Culture By CoinDesk Research Dec 30, 2025 Commissioned by Pudgy Penguins Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale. What to know : Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token. The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility. View Full Report More For You Criminal use of crypto spikes after years of steady decline, TRM report says By Jesse Hamilton | Edited by Nikhilesh De 2 hours ago While the increasingly professional bad guys' crypto rocketed to $158 billion in 2025, it's still a decreasing share of overall digital assets activity. What to know : A new TRM Labs report says illicit activity is back up after years of falling numbers, though the share of overall digital assets volume it represents is still on the decrease. The bad actors are much more sophisticated — from state-backed sanctions-evasion infrastructure, to global networks that launder the proceeds of crypto heists. Read full story Latest Crypto News The Protocol: Ethereum to roll out new AI agents standard soon 14 minutes ago Robinhood CEO says tokenized stocks could prevent another GameStop freeze 28 minutes ago Strive clears Semler debt off books, buys more bitcoin after $225 million preferred stock sale 59 minutes ago Peter Thiel and Galaxy-backed Citrea wants to turn idle bitcoin into a high-speed bank account 1 hour ago CoinDesk 20 Performance Update: AAVE Gains 2.9%, Leading Index Higher 2 hours ago Criminal use of crypto spikes after years of steady decline, TRM report says 2 hours ago Top Stories Tether is buying up to $1 billion of gold per month and storing it in a 'James Bond' bunker 3 hours ago Fidelity Investments starts its own stablecoin in a massive bet that future of banking is on blockchain 2 hours ago The Fed has an interest rate announcement today — crypto traders think it will be boring 3 hours ago HYPE token's 50% surge is a story of crypto-traditional market convergence, treasury firm says 8 hours ago Ethereum unveils new rules to make AI agents trustworthy 8 hours ago Altcoins jump as dollar slides, bitcoin holds steady: Crypto Markets Today 4 hours ago