TLDR
- Coinbase CEO Brian Armstrong explained that the company opposed the crypto bill due to concerns over consumer protection.
- Armstrong emphasized that certain provisions in the bill would harm market competition and disadvantage crypto firms.
- The Senate Banking Committee postponed the planned markup of the bill after Coinbase withdrew its support.
- Armstrong argued that the draft bill, if passed, could eliminate several Coinbase product lines.
- Coinbase and other crypto firms continue to push for revisions to ensure the bill better protects consumers and supports innovation.
Coinbase CEO Brian Armstrong stated that the company opposed a major digital assets bill at the last minute due to provisions that raised concerns for consumer protection and market competition. Armstrong explained in an interview that the bill contained elements that could harm American consumers and crypto firms alike. Despite ongoing negotiations, Coinbase and other crypto companies ultimately decided the draft legislation was too harmful to support.
Coinbase CEO Criticizes Provisions of Crypto Bill
Coinbase CEO Brian Armstrong explained that the bill, which aims to clarify how federal regulators oversee the U.S. crypto industry, posed a threat to consumer protection. He said provisions of the bill would allow banks to use regulation to suppress competition, which would disadvantage crypto firms and harm consumers. Armstrong emphasized that consumers deserve better options and protections, especially in the crypto market, which continues to evolve rapidly.
He mentioned that the bill’s lengthy draft, published just before midnight on Monday, surprised industry participants with unexpected provisions. After reviewing the draft, Coinbase concluded that the bill, in its current form, would have been “catastrophic” for average American consumers. Armstrong noted that the company felt it was necessary to withdraw support to bring lawmakers back to the table for further revisions.
Senate Postpones Crypto Bill After Coinbase Opposition
The U.S. Senate Banking Committee canceled a planned markup of the crypto market structure bill after Coinbase withdrew its support for the legislation. Senate Banking Committee Chairman Tim Scott confirmed that the bill would not be marked up as originally scheduled, with no new date set for review. Armstrong indicated that the decision was a strategic move to ensure the bill would be reconsidered and potentially revised before moving forward.
He stressed that the setback was part of an ongoing negotiation process, emphasizing that the crypto industry’s top legislative priority remains advancing a bill that serves consumers’ interests. Armstrong also stated that he expected a new draft of the bill to emerge soon. He expressed hope that a revised version could be marked up within a few weeks.
Armstrong emphasized that the current draft of the crypto bill could eliminate several key Coinbase product lines. He reiterated that the company’s opposition was not meant to halt progress but to ensure that the final version of the bill would better protect consumers and allow innovation to thrive. Armstrong also pointed to stablecoins as an area of innovation that could benefit both consumers and banks, offering higher returns than traditional savings accounts.
Stablecoins, Armstrong argued, present a viable opportunity for banks, not a threat, since they are backed one-to-one with reserves. He highlighted that stablecoins are held in short-term U.S. Treasurys, a safer place for consumers to store funds.
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