Coinbase CEO Brian Armstrong announced he is withdrawing his support for the cryptocurrency market structure bill, arguing that the current draft is worse than no law at all, with over 137 amendments already submitted.
Coinbase CEO Brian Armstrong made a surprising move by publicly withdrawing his support for the proposed US Senate bill on cryptocurrency market structure. In a shocking statement, he asserted that the latest version of the bill is worse than no regulation at all, marking a significant setback in efforts to build a legal framework for the digital asset industry.
This decision comes after Coinbase thoroughly reviewed the Senate Banking Committee's draft bill over the past 48 hours. Armstrong argues that the current proposal would put the entire cryptocurrency industry at a greater disadvantage in the future. This development comes as the cryptocurrency market is experiencing a strong surge, with total market Capital increasing by 3% in the 24 hours following the bill's release. Bitcoin is approaching $98,000 while Ethereum is heading towards $3,500.
Concerns about privacy and competition
In a detailed post on the X platform, the Coinbase CEO listed a series of serious problems that he believes cannot be fixed with minor adjustments. The bill, which has been criticized, would ban Tokenized Stocks, restrict decentralized finance, and undermine user privacy by allowing the government access to personal financial records.
Armstrong was particularly concerned that the bill would weaken the role of the Commodity Futures Trading Commission (CFTC) while expanding the authority of the Securities and Exchange Commission (SEC). He also strongly criticized the amendments related to stablecoins, arguing that proposals to restrict or eliminate stablecoin rewards would enable banks to stifle competition and protect the interests of existing institutions rather than consumers.
While appreciating the senators' efforts toward a bipartisan outcome, Armstrong stressed that the current version would be significantly worse than the status quo. Coinbase is committed to continuing to work with lawmakers and push for necessary changes, while remaining optimistic about the possibility of forging a better version through further rounds of negotiations.
The cryptocurrency industry has been calling for a clear legal framework for years, particularly following a series of cyberattacks, scams, and damaging incidents. One of the core objectives of the bill is to determine when a digital Token should be XEM a security or a commodity, an issue that has long been at the heart of disputes between cryptocurrency businesses and regulators.
The draft bill has now attracted over 137 proposed amendments, with more changes expected before a final vote. Summer Mersinger, CEO of the Blockchain Association, accused banks of exerting significant influence over the lawmaking process, seeking to rewrite the bill to protect their market position and restrict new products before they have a chance to compete.
