- Coinbase cannot back the current Senate Banking draft on crypto market structure.
- The company cites four major flaws, including a de facto ban on tokenized equities and broad DeFi prohibitions.
- The draft would reduce the CFTC’s authority and favor the SEC, according to the company.
- Brian Armstrong said he would prefer no bill to a bill that is worse than the status quo.
- The Senate Banking Committee plans a hearing and vote amid more than 75 proposed amendments.
Brian Armstrong, CEO of Coinbase, said Wednesday evening that the company cannot support the Senate Banking draft on crypto market structure as written. He made the statement in a tweet, saying the bill contains too many flaws to pass in its current form.
Armstrong outlined four primary concerns. First, the draft imposes a “defacto ban on tokenized equities.” Second, it contains DeFi prohibitions that he says would give the government broad access to financial records and remove privacy rights. Third, the bill would erode much of the CFTC’s authority and make it subservient to the SEC. Fourth, draft amendments would end rewards on stablecoins, which Armstrong says would let banks block competition.
He added appreciation for legislators’ efforts but warned the bill could be worse than current law. “We appreciate all the hard work by members of the Senate to reach a bi-partisan outcome, but this version would be materially worse than the current status quo,” he wrote. “We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft.”
Armstrong also expressed optimism about reaching a better result, writing he was “quite optimistic that we will get to the right outcome.” The Senate Banking Committee is scheduled to hold a hearing on the legislation Thursday morning and plans to vote on advancing it to the full Senate. Lawmakers have proposed more than 75 amendments, though many could be defeated or withdrawn before final passage.
The company noted it has advised US policymakers in recent months as the government moves toward more pro-crypto stances, and several bills loosening digital-asset rules have already passed.
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