Coinbase chief pushes back against key U.S. crypto bill, casting uncertainty over regulation

Brian Armstrong, CEO of Coinbase Global Inc. (NASDAQ: COIN), stated on Wednesday that the top U.S. cryptocurrency exchange cannot endorse a significant draft crypto regulation bill as it stands, delivering a setback to the bill’s chances as it advances to the Senate. Armstrong told lawmakers and industry participants that the recently introduced legislation includes “too many issues” and risks leaving the crypto sector in a worse position than under current regulations.

The bill seeks to create a clear regulatory framework for digital assets by defining when tokens qualify as securities or commodities and assigning the Commodity Futures Trading Commission (CFTC) oversight of spot crypto markets. However, Armstrong criticized parts of the bill that he believes would effectively ban tokenized equities, reduce the CFTC’s authority, and eliminate rewards on stablecoins—a key offering for Coinbase.

Without Coinbase’s support, the bill’s progress through the Senate Banking Committee is uncertain. Coinbase has played a significant role in shaping U.S. crypto policy and has contributed millions to political action committees backing pro-crypto candidates. Armstrong stated, “we’d rather have no bill than a bad bill,” but remains hopeful that ongoing negotiations could produce a better result. The Senate is expected to hold a markup session on the bill on Thursday, during which lawmakers will consider amendments and changes.

Sources: Reuters