Bitcoin's historic charge toward the $100,000 milestone hit a formidable wall on Friday, stalling at $95,000 as political drama in Washington sent shockwaves through the markets. The momentum shift came after the U.S. Senate Banking Committee abruptly postponed its scheduled vote on the Digital Asset Market Clarity Act—widely known as the US CLARITY Act crypto bill—following a last-minute withdrawal of support from industry heavyweight Coinbase. For investors tracking the Bitcoin price today, the delay represents a significant speed bump in what many hoped would be the definitive regulatory breakthrough of 2026.

Senate Vote Collapses Over Stablecoin Yield Controversy

The legislative breakdown occurred late Thursday when Coinbase CEO Brian Armstrong publicly withdrew his company's endorsement of the bill, declaring that the current draft would leave the industry "materially worse than the status quo." The friction centers on a controversial provision that would ban crypto platforms from offering "passive yield" on stablecoin holdings—a practice banks argue creates an unfair competitive advantage.

Sources close to the negotiations reveal that intense lobbying from the American Bankers Association played a pivotal role in the insertion of these restrictive clauses. Banking representatives have warned lawmakers that allowing crypto firms to pay interest on digital dollar substitutes could siphon up to $6.6 trillion in deposits away from traditional community banks, threatening local lending markets.

"We would rather have no bill than a bad bill," Armstrong stated, signaling that Coinbase stablecoin yield opposition is non-negotiable. The exchange argues that restricting rewards to only "activity-based" tasks—like staking or providing liquidity—would stifle innovation and drive American users to offshore platforms.

Crypto Market News 2026: Bitcoin Rally Pauses

The legislative gridlock had an immediate cooling effect on the charts. After surging past $96,000 earlier in the week, Bitcoin retraced to hover around the $95,000 support level. While the long-term trend remains bullish, the uncertainty has dampened the immediate euphoria that was driving the Bitcoin 100k prediction narratives on social media.

Market analysts note that the Fear and Greed Index remains in "Greed" territory at 61, but the aggressive buying pressure seen in early January has subsided. "The market was pricing in a regulatory victory lap," explains a senior strategist at Digital Asset Research. "With the vote delayed indefinitely, institutional capital is taking a pause to reassess the timeline for U.S. regulatory clarity."

The "Poison Pill" Provision

The specific language causing the uproar prohibits digital asset service providers from paying interest solely for holding payment stablecoins. For companies like Coinbase, whose revenue model increasingly relies on stablecoin rewards (such as those offered to Coinbase One members), this provision is viewed as an existential threat.

Senate Banking Committee Chair Tim Scott (R-SC) attempted to salvage the situation by postponing the markup rather than canceling it, stating that "everyone remains at the table." However, with the Senate Banking Committee crypto hearing now in limbo, the path forward is unclear.

Banks vs. Crypto: The $6 Trillion Battleground

This legislative stall highlights the deepening trench warfare between traditional finance and the crypto sector. The banking lobby's success in inserting the yield ban demonstrates their continued influence in Washington. They argue that stablecoins essentially function as unregulated deposit accounts when they offer yield, bypassing the capital requirements and insurance costs that banks must bear.

Conversely, crypto advocates see this as a protectionist move designed to shield legacy institutions from competition. The crypto regulation US 2026 landscape is now defined by this clash: can Congress pass market structure bills without crippling the business models of the very companies they aim to regulate?

What's Next for the CLARITY Act?

Despite the setback, optimism hasn't entirely evaporated. Standard Chartered and other major financial institutions maintain their forecasts for a Bitcoin all-time high in the first half of 2026, citing strong ETF inflows and macroeconomic trends unrelated to the specific bill. However, the timeline for legislative clarity has undoubtedly shifted.

Negotiators are expected to spend the coming weeks crafting a compromise—perhaps one that allows limited yield under strict disclosure regimes or higher capital reserves. Until then, the crypto market news 2026 cycle will likely remain volatile, with every headline from Capitol Hill capable of swaying the Bitcoin price today by thousands of dollars.