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Coinbase said it cannot support the Senate crypto bill as written
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The company raised concerns over privacy and stablecoin rewards
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The bill is set for review by the Senate Banking Committee
Coinbase has publicly withdrawn its support for a major Senate crypto bill just ahead of a scheduled vote by the Senate Banking Committee.
In a public statement, Coinbase CEO Brian Armstrong said the bill would be worse than the current regulatory environment if passed in its current form. He argued that while bipartisan efforts are welcome, the draft includes provisions that could harm innovation and user rights.
Armstrong highlighted concerns around decentralized finance, user privacy, and stablecoin rewards. He warned that some provisions could grant the government broad access to financial data and restrict rewards that crypto platforms currently offer to stablecoin users.
The bill aims to clarify regulatory responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission, while defining when digital assets qualify as securities or commodities. Critics within the crypto industry argue that the proposal gives too much authority to the SEC, an agency many firms view as hostile following years of enforcement-led regulation.
The treatment of stablecoin rewards has become a central point of tension. Banking groups want stricter limits to prevent deposits from leaving traditional banks, while crypto firms argue that the issue was already addressed in previous stablecoin legislation.
Despite Coinbase’s opposition, other industry groups continue to support moving the bill forward, saying it can be improved through amendments. The committee ultimately postponed the markup, signaling that negotiations are still ongoing.
