Coinbase says it cannot support crypto bill in current form

Coinbase CEO Brian Armstrong said the company cannot support a draft U.S. bill that seeks to set a regulatory framework for cryptocurrencies and assign policing of spot crypto markets to the CFTC. The bill's markup in the Senate Banking Committee was scheduled for Thursday, and Reuters said it is unclear if the process can proceed without Coinbase's backing.

Coinbase's CEO Brian Armstrong said on Wednesday the company cannot support a draft U.S. bill intended to create a regulatory framework for cryptocurrencies. The legislation, unveiled on Monday, seeks to define when crypto tokens are securities, commodities or otherwise. It would also give policing of spot crypto markets to the Commodity Futures Trading Commission. Armstrong said the draft contains multiple problems that prevent Coinbase's support. Key details: - Brian Armstrong said Coinbase cannot support the draft legislation in its current form. - The bill would classify tokens and assign oversight of spot crypto markets to the Commodity Futures Trading Commission. - Armstrong cited "too many issues," including a de facto ban on tokenized equities, an erosion of CFTC authority, and draft amendments he said would "kill rewards on stablecoins." - The draft would prohibit crypto firms from paying interest solely for holding a stablecoin, while allowing rewards for certain activities such as sending a payment or participating in a loyalty program. - Reuters noted Coinbase had been a key stakeholder in negotiations and donated millions to PACs in 2024; without Coinbase's backing it said it is unclear if the bill's markup can proceed. - The Senate Banking Committee markup was scheduled for 10 a.m. ET on Thursday; the CFTC did not immediately comment to Reuters. Summary: Armstrong's statement leaves the bill's progress uncertain because Coinbase was a principal stakeholder in the negotiations. The Senate Banking Committee markup was scheduled for Thursday and the draft could change as senators consider amendments. Undetermined at this time.