Coinbase Global Inc (NASDAQ:COIN) Chief Executive Brian Armstrong said on Wednesday that the largest US cryptocurrency exchange cannot support a major draft crypto regulation bill in its current form, casting doubt on the legislation as it heads toward consideration in the Senate.
Armstrong told lawmakers and industry participants that the proposal, which was introduced in the Senate earlier this week, contains “too many issues” and risks leaving the digital asset sector in a worse position than under the existing regulatory landscape.
The bill is intended to create a comprehensive framework for cryptocurrencies, including clearer definitions of when tokens should be treated as securities or commodities, and assigning oversight of spot crypto markets to the Commodity Futures Trading Commission.
However, Armstrong said several provisions are problematic. He argued the draft would effectively prohibit tokenized equities, dilute the authority of the CFTC and “kill rewards on stablecoins,” which he described as a core offering for Coinbase.
Without support from Coinbase, the outlook for the bill remains uncertain, particularly as it moves through the Senate Banking Committee. The exchange has played a prominent role in shaping US crypto policy debates and has contributed millions of dollars to political action committees backing candidates viewed as supportive of the industry.
In a statement, Armstrong said “we’d rather have no bill than a bad bill,” while adding that he remains hopeful ongoing discussions could lead to improvements in the legislation.
The Senate is due to hold a markup session on the draft bill on Thursday, when lawmakers are expected to debate potential amendments and changes.