Key takeaways
- Coinbase CEO Brian Armstrong opposes the current Senate plan, warning that it could restrict tokenized stocks, privacy in DeFi, and stablecoin rewards.
- A new report from Coindesk says that Senator Cynthia Lummis has indicated that the hearing could be postponed, despite the initial plan for an amendment and vote on Thursday.
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Coinbase CEO Brian Armstrong said the exchange would not support the Senate Banking Committee’s current crypto bill, citing provisions that could ban tokenized stocks, restrict DeFi and remove stablecoin rewards.
https://x.com/brian_armstrong/status/2011545247105355865
In an article after reviewing the bill for 48 hours, Armstrong warned that the bill would give excessive powers to the SEC, weaken the CFTC and grant the government expanded access to financial data. He also highlighted amendments that could give banks the power to eliminate crypto competition by ending yield-producing stablecoins.
The Senate Banking Committee was initially scheduled to amend and vote on the bill Thursday morning, but a new report from CoinDesk says that Sen. Cynthia Lummis indicated the hearing could be postponed. The legislation aims to define when digital assets are considered securities or commodities and allocate regulatory oversight between the SEC and CFTC.
Armstrong said Coinbase respected the efforts of lawmakers, but believed this plan would be worse than no legislation at all. “We would rather have no bill than a bad bill,” he wrote, pledging to continue pushing for crypto-friendly regulations.
