Robinhood CEO Backs Senate Crypto Bill After Coinbase Exit!!

Senate Delay on Crypto Bill Puts Robinhood Stock in Spotlight

  • The Senate Committee unveiled a market-structure bill (the Clarity Act) to define when crypto tokens are securities, commodities, or other categories.
  • Coinbase CEO Brian Armstrong withdrew support, saying the draft would enact a “de facto ban” on tokenized equities and restrict stablecoin rewards; see Armstrong’s post.
  • Robinhood CEO Vlad Tenev backed Congress’s effort, offered help, and noted staking and stock tokens remain limited in the U.S.; see Tenev’s post.
  • The bill’s delay coincided with a more than 7% drop in Robinhood shares and heightened social trading activity after hours.
  • Major firms including Bank of America have highlighted stablecoin growth; BofA’s CEO warned that roughly $6 trillion of U.S. commercial deposits could move to digital assets if allowed.

The Senate Committee released a market-structure bill on Monday intended to clarify when crypto tokens are securities, commodities, or fall into other categories, and the measure was delayed later in the week after a major exchange withdrew support. Coinbase CEO Brian Armstrong said the current draft would enact a problem for tokenized equities and stablecoin rewards, while Robinhood CEO Vlad Tenev urged lawmakers to pass legislation that protects consumers and unlocks innovation.

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Brian Armstrong said the draft would create a “de facto ban” on tokenized equities and limit stablecoin rewards, and posted that the bill was worse than the status quo: “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. We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft”, as shown in Armstrong’s post.

By contrast, Vlad Tenev said the industry needs U.S. leadership on crypto policy and highlighted user demand and current limitations, noting that “staking is one of the most requested features on RobinhoodApp, but it’s still unavailable to customers in four U.S. states due to the current gridlock. Stock tokens are available to our customers in the EU, but not in our home market. It’s time for the US to lead on crypto policy”. He added, “Let’s pass legislation that protects consumers and unlocks innovation for everyone. We support Congress’s efforts to pass the market structure bill. There is still work to be done, but we see a path and are here to help,” in Tenev’s post.

The bill’s postponement coincided with a sharp market reaction: Robinhood stock closed more than 7% lower on Thursday and saw elevated social trading activity in after-hours trading. Financial firms have also underscored stablecoin momentum; Bank of America CEO Brian Moynihan said roughly $6 trillion of U.S. commercial deposits could migrate to digital assets if permitted.

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