Banking GOP Bill Pulled, But Path Forward Remains

Nearly 24 hours after the GOP-led markup on the Senate Banking Committee’s bill was pulled, industry insiders, lawmakers, and staffers are still processing the fallout—and many remain frustrated by the process, according to Eleanor Terrett (@EleanorTerrett).Sources tell Terrett that hope remains for the legislation if banks, Coinbase, and Democratic lawmakers can reach a deal on yield in the coming days. “All is not lost,” said one insider.The contentious tokenized securities provision, Section 505, now appears less of a roadblock. Tokenization firms suggest the language Coinbase objected to was taken out of context, while stakeholders—including Coinbase CEO Brian Armstrong—say a significant amendment or removal of the section is possible.Ethics concerns remain unchanged, and talks between the White House and Senate are ongoing.Questions also persist about whether the Banking Committee’s shifted markup will affect the Agriculture Committee’s timeline. Sources tell Terrett the order may not matter: if Agriculture secures a bipartisan deal, it could ease the Senate Banking process. This mirrors last summer’s House experience, when the Agriculture Committee passed its portion of the Clarity Act 47-6, encouraging the Financial Services Committee to move forward even with less Democratic support.As negotiations continue, both the industry and Congress are watching closely to see if a compromise emerges to revive the bill.