Coinbase Chief Executive Brian Armstrong said the exchange cannot support the new Senate crypto bill in its current form. His stance adds uncertainty to Washington’s latest effort to define digital asset rules. The draft aims to clarify token classifications and assign oversight of the spot market to the Commodity Futures Trading Commission. Armstrong posted his opposition on Wednesday after reviewing the text for 48 hours. He said the bill would leave the industry worse off than it is in the current status quo.
Armstrong stated that the draft contains multiple issues that impact core cryptocurrency activities. He cited a de facto ban on tokenized equities and new limits touching decentralized finance and privacy. He also warned that the text could weaken the CFTC and expand the SEC's reach.
He also objected to provisions affecting stablecoin rewards. The bill bars crypto firms from paying interest simply for holding a stablecoin. It still allows rewards for payments and loyalty programs under future disclosure rules.
Armstrong said Coinbase would prefer no bill over a flawed one. He thanked senators for bipartisan work while urging changes. The company concluded that the draft does not serve customer interests.
On Monday, the Senate Banking Committee released updated text exceeding 270 pages.
More than 70 amendments followed before a planned Thursday markup. Several sections appeared for the first time, including a new focus on illicit finance.
People familiar with the process said the bill raised unresolved concerns. They said limited time prevented detailed talks with committee members. As a result, support across parties did not materialize.
Late Wednesday, committee chair Tim Scott announced the markup delay. He said industry leaders and lawmakers remain engaged in good faith. He added that the goal remains clear and workable crypto rules.
Ahead of the markup, votes reportedly fell short of the required number. Democratic negotiator Ruben Gallego said he could not support the bill. He also stated that a planned meeting with a White House digital assets adviser did not take place.
Coinbase’s position carries weight due to its role in discussions about market structure. The company also ranks among the top spenders in pro-crypto political campaigns. Lawmakers had planned to begin markup at 10 a.m. ET before the postponement.
Separately, Galaxy warned the Senate draft exceeds a House-passed bill on illicit finance.
Galaxy said a new authority could expand the United States Department of the Treasury's reach into crypto transfers. It compared the power of tools created after the Patriot Act era.
As lawmakers seek more apparent oversight during a friendlier tone from the Trump administration, the path forward remains uncertain. Will lawmakers revise the draft to keep major platforms engaged or allow the framework to stall again?
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Coinbase rejected the Senate's crypto bill as written, citing risks to tokenized equities, DeFi, stablecoin rewards, and the CFTC's authority. Lawmakers postponed the markup after support for the measure weakened. The debate now turns to whether Congress revises the draft or delays crypto market rules again.