Why did Coinbase withdraw support for the Senate crypto bill?

Coinbase cited that the current bill version is "materially worse than the current status quo," with issues like tokenized equity bans and DeFi restrictions.

What are the main concerns with the current market-structure bill?

The bill includes a ban on tokenized equities, restrictions on decentralized finance, and potential erosion of the CFTC's authority.

Could Coinbase's decision impact the crypto bill's passage?

Yes, Coinbase's withdrawal could significantly delay or even derail the market-structure bill, impacting the broader crypto industry.

Home / Business and Economy / Coinbase Dumps Senate Crypto Bill: "Worse Than Status Quo"

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 Dumps Senate Crypto Bill: "Worse Than Status Quo"

Coinbase Global Inc. has rescinded its support for the market-structure bill scheduled for markup in the Senate Banking Committee.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.