According to ChainCatcher, Coinbase CEO Brian Armstrong stated that Coinbase will not support the current version of a proposed comprehensive cryptocurrency legislation until the U.S. Senate Banking Committee revises and votes on it. Armstrong posted on X, expressing gratitude to the senators for promoting bipartisan consensus, but he called the draft "worse than the current regulatory status," adding, "We would rather have no bill than a bad one." The bill aims to clarify the jurisdictional boundaries between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating digital assets, define when digital assets qualify 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 pointed out significant issues in the bill regarding DeFi and stablecoin yield mechanisms, noting that some provisions could grant the government "unlimited access to personal financial records," eroding user privacy. He also criticized the bill for potentially stifling stablecoin reward mechanisms and for weakening the CFTC's authority, making it subordinate to the SEC, which he said would hinder industry innovation. Insiders said Coinbase's public opposition is "symbolic" and could influence the bill's ultimate fate. The issue of stablecoin yields has become a focal point of the debate, with banking groups concerned that such mechanisms could draw deposits away from traditional banks and threaten community banks, while the crypto industry accuses banks of trying to limit competition. Despite this, some industry groups still support moving forward with the legislation. Cody Carbone, CEO of the Digital Chamber of Commerce, said the group will continue to push for the bill to become law by 2026. Brad Garlinghouse, CEO of Ripple, also expressed optimism that the proposed revisions could resolve the disagreements.
Coinbase Opposes Senate Crypto Bill, Citing Regulatory and Privacy Concerns
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Summary
According to ChainCatcher, Coinbase opposes a Senate cryptocurrency bill due to regulatory and privacy concerns. CEO Brian Armstrong described the draft as "worse than the current status," warning that it could harm DeFi, stablecoin rewards, and user privacy. The bill aims to clarify the roles of the CFTC and SEC, define asset categories, and add disclosure requirements. Armstrong argued that the bill weakens CFT (Countering the Financing of Terrorism) protections and CFTC authority, potentially impacting liquidity and the broader crypto market. A hearing and vote are scheduled for Thursday. Reactions are mixed, with some advocating for its passage by 2026.
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