Coinbase stated that it does not support the Senate cryptocurrency bill, which may affect the legislative process

Coinbase CEO Brian Armstrong stated that Coinbase will not support the current version of the bill before the Senate Banking Committee revises and votes on comprehensive cryptocurrency legislation. Armstrong posted on the X platform that, while he appreciates the senators' efforts to promote bipartisan consensus, the draft is "worse than the current regulatory status" and that "it’s better to have no bill than a bad bill."

The bill aims to clarify the jurisdictional boundaries of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in the regulation of digital assets, define when digital assets are considered securities or commodities, and introduce new disclosure requirements. The Senate Banking Committee plans to hold a hearing and vote on the bill on Thursday morning.

Armstrong pointed out that the bill has significant issues regarding DeFi, stablecoin yields, and other areas, with some provisions potentially granting the government "unlimited access to personal financial records," eroding user privacy, while related amendments could "stifle stablecoin reward mechanisms." He also criticized the bill for weakening the CFTC's authority, making it subordinate to the SEC in regulatory matters, which is detrimental to industry innovation.

Insiders indicated that Coinbase's public opposition is "symbolic" and could affect the final fate of the bill. The issue of stablecoin yields has become a focal point of controversy, with banking groups concerned that the related mechanisms could siphon off deposits and impact community banks, while the crypto industry accuses banks of trying to limit competition.

Despite this, some industry organizations continue to support advancing the legislation. Digital Chamber CEO Cody Carbone stated that they will continue to push for the bill to become law by 2026; Ripple CEO Brad Garlinghouse also expressed optimism about resolving differences through amendments.