Coinbase CEO: "Can't support the Senate Banking Committee bill…better to have none"

Brian Armstrong, CEO of Coinbase, said the company cannot support the draft crypto-asset legislation released by the U.S. Senate Banking Committee.

In a post on X on the 15th (local time), Armstrong said, "After reviewing the Senate Banking Committee’s draft legislative text over the past 48 hours, Coinbase cannot support the bill in its current form." He assessed the proposal as a step backward from the existing regulatory environment.

Armstrong cited several issues: a de facto ban on tokenized stocks; restrictions on decentralized finance that would allow the government unlimited access to financial records; potential infringement of privacy rights; reduced innovation due to weakened authority for the Commodity Futures Trading Commission (CFTC); a structure subordinate to the Securities and Exchange Commission (SEC); and an effective blocking of stablecoin reward features.

While acknowledging lawmakers’ efforts to reach a bipartisan agreement, Armstrong said, "This draft is materially worse than the current regulatory environment," adding, "If it’s a bad bill, it’s better to have none."

He went on to emphasize that "crypto assets should be treated on a level competitive playing field with other financial services," arguing that only then can the industry be built in the U.S. in a safe and trustworthy way. He also said he would continue to participate in discussions, expressing hope for a better draft.