Coinbase, one of the largest cryptocurrency exchanges in the United States, has made headlines by withdrawing its support for the Senate Banking Committee’s draft of a market structure bill for digital assets. The decision was announced by Coinbase CEO Brian Armstrong, who expressed concerns over several key provisions in the proposed legislation.
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Armstrong highlighted four main issues that he believes would make the bill “materially worse” for the US crypto industry. One of the major concerns raised by Coinbase is the de facto ban on tokenized equities included in the draft bill. This provision could have significant implications for platforms like Coinbase that plan to introduce tokenized stocks and assets in the future.
In addition to the ban on tokenized equities, Armstrong also criticized the draft bill for its impact on stablecoins. He argued that the proposed legislation would remove rewards on stablecoins, potentially allowing banks to block their competition. This could stifle innovation and competition within the crypto industry.
Furthermore, Armstrong raised concerns about the DeFi provisions in the draft bill, which he believes would give the government unlimited access to individuals’ financial records and remove their right to privacy. He also highlighted that the bill weakens the authority of the Commodity Futures Trading Commission (CFTC) over cryptocurrencies.
In a tweet, Armstrong stated, “We’d rather have no bill than a bad bill,” emphasizing the importance of crafting legislation that supports innovation and growth within the crypto industry. Coinbase’s decision to withdraw support for the bill reflects the growing divide within the crypto community over the proposed regulatory framework.
The draft legislation, known as the Digital Asset Market Clarity Act, aims to establish clear federal rules for classifying digital asset tokens and regulating their issuers. While some industry experts believe that the bill is a step in the right direction, others, like Armstrong, have voiced concerns about its potential negative impact on the crypto market.
As the debate over the proposed bill continues, it remains to be seen how lawmakers will address the concerns raised by Coinbase and other industry stakeholders. Finding a balance between regulatory oversight and fostering innovation will be crucial in shaping the future of the US crypto industry.
Overall, Coinbase’s decision to withdraw support for the US crypto bill underscores the complexities and challenges of regulating the rapidly evolving cryptocurrency market. As the industry continues to mature, striking the right balance between innovation and regulation will be essential for its long-term growth and sustainability.
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References:
– https://cointelegraph.com/news/clarity-act-crypto-market-structure-coinbase-brian-armstrong?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
– https://www.coindesk.com/policy/2026/01/14/coinbase-pulled-support-for-key-crypto-bill-here-s-what-it-means-for-the-industry
– https://www.pymnts.com/cryptocurrency/2026/coinbase-ceo-pulls-support-for-senate-crypto-bill-over-tokenized-equities-ban/
– https://www.financemagnates.com/cryptocurrency/no-bill-rather-than-a-bad-bill-coinbases-ceo-pulls-support-from-us-crypto-draft-bill/
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