BlockBeats News, January 15: Coinbase CEO Brian Armstrong stated that Coinbase will not support the current version of the bill before the Senate Banking Committee revises and votes on a comprehensive cryptocurrency legislation. Armstrong posted on X platform that, while appreciating the senators’ efforts to promote bipartisan consensus, the draft is “worse than the current regulatory status,” and “it’s better to have no bill than a bad bill.”
The bill aims to clarify the jurisdictional boundaries between the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in digital asset regulation, define when digital assets are securities or commodities, and introduce new disclosure requirements. The Senate Banking Committee plans to hold a hearing and vote on the bill on Thursday morning.
Armstrong pointed out that the bill has significant issues regarding DeFi, stablecoin yields, and other aspects, with some provisions potentially granting the government “unlimited access to personal financial records,” eroding user privacy, while related revisions could “strangle stablecoin reward mechanisms.” He also criticized the bill for weakening CFTC authority, making it subordinate to the SEC in regulation, which is detrimental to industry innovation.
Insiders noted that Coinbase’s public opposition “holds symbolic significance” and may influence the bill’s final outcome. The stablecoin yield issue has become a focal point of controversy, with banking groups concerned that related mechanisms would drain deposits and impact community banks, while the crypto industry accuses banks of attempting to restrict competition.
Despite this, some industry institutions still support advancing the legislation. Digital Chamber of Commerce CEO Cody Carbone stated they will continue to push for the bill to become law by 2026; Ripple CEO Brad Garlinghouse also expressed optimism about resolving differences through revisions.
