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Coinbase Dumps Senate Crypto Bill: "Worse Than Status Quo"
15 Jan
Summary
- Coinbase withdrew support for the market-structure bill, deeming it worse than current regulations.
- Key issues cited include tokenized equities ban and DeFi restrictions.
- The withdrawal could delay or derail the passage of the cryptocurrency legislation.
Coinbase Global Inc. has rescinded its support for the market-structure bill scheduled for markup in the Senate Banking Committee. CEO Brian Armstrong expressed concerns on X, stating the bill's current iteration is "materially worse than the current status quo" and that the company would "rather have no bill than a bad bill."
Armstrong cited several critical issues, including an apparent ban on tokenized equities, restrictions on decentralized finance (DeFi), and a reduction in the Commodity Futures Trading Commission's (CFTC) authority. Amendments that would end rewards on stablecoins offered by exchanges, like those Coinbase provides for USDC, were also a point of contention.
This development introduces significant uncertainty for the bill's future, potentially delaying or derailing its passage. The crypto industry, heavily funded by Coinbase and its allies, has been advocating for this legislation to enhance the asset class's legitimacy and provide regulatory clarity.
