Coinbase's statement of opposition to the Senate's crypto bill could impact the legislative process.
TL;DR
Coinbase CEO opposes a Senate crypto bill, calling it worse than current regulations and harmful to DeFi, stablecoins, and privacy. His landmark opposition could influence the bill's fate, though some industry groups still support legislative efforts.
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According to ChainCatcher, Coinbase CEO Brian Armstrong stated that Coinbase will not support the current version of a comprehensive cryptocurrency bill before the Senate Banking Committee votes on its revisions. Armstrong posted on the X platform that while he appreciates the senators' efforts to push for bipartisan consensus, the draft bill is "worse than the current regulatory landscape," adding, "I'd rather have no bill than a bad one."
The bill aims to clarify the boundaries of authority between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating digital assets, define when digital assets are classified as securities or commodities, and introduce new disclosure requirements. The Senate Banking Committee is scheduled to hold a hearing and vote on the bill on Thursday morning.
Armstrong points out that the bill has significant problems with DeFi and stablecoin yields, with some provisions potentially granting the government "unlimited access to personal financial records," eroding user privacy. He also argues that the amendments could "stifle stablecoin reward mechanisms." Furthermore, he criticizes the bill for weakening the CFTC's authority, making it subordinate to the SEC in regulation, which is detrimental to industry innovation.
Sources familiar with the matter said Coinbase's public opposition was "landmark" and could influence the bill's ultimate fate. The issue of stablecoin yields has become a focal point of contention, with banking groups worrying that the mechanism would siphon deposits and impact community banks, while the crypto industry accuses banks of trying to stifle competition.
Despite this, some industry organizations still support pushing for legislation. Cody Carbone, CEO of the Chamber of Digital Commerce, stated that they will continue to push for the bill to become law in 2026; Ripple CEO Brad Garlinghouse also expressed optimism that the differences can be resolved through amendments.