Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong said on Wednesday that the leading U.S. cryptocurrency exchange cannot support a major draft crypto regulation bill in its current form, dealing a setback to the legislation as it heads toward Senate review.
Armstrong told lawmakers and industry participants that the proposal, introduced in the U.S. Senate earlier this week, contains “too many flaws” and risks leaving the digital asset industry in a worse position than under the existing regulatory framework.
The bill is designed to create a broad regulatory structure for cryptocurrencies by clarifying when digital tokens should be treated as securities or commodities. It also seeks to place oversight of spot crypto markets under the authority of the Commodity Futures Trading Commission.
However, Armstrong raised strong objections to several provisions, arguing they would effectively prohibit tokenized equities, reduce the CFTC’s regulatory role, and eliminate rewards on stablecoins—an important revenue stream for Coinbase Global Inc.
Without Coinbase’s support, the bill’s path forward remains uncertain, particularly within the Senate Banking Committee. Coinbase has played a significant role in shaping U.S. crypto policy in recent years and has contributed millions of dollars to political action committees backing pro-crypto candidates.
Armstrong said in a statement that the company would “rather have no bill than a bad bill,” while adding that he remains hopeful continued negotiations could result in improved legislation.
The Senate is expected to hold a markup session on the draft bill on Thursday, during which lawmakers will debate potential amendments and revisions.
