A Wake-Up Call for the Crypto Industry
After reviewing the latest draft of the U.S. Senate Banking Committee’s cryptocurrency legislation, Coinbase CEO Brian Armstrong has publicly declared his opposition. He warns that the bill doesn’t advance the sector—instead, it risks dragging America backward into outdated regulatory thinking.
Key Areas of Concern
- De Facto Ban on Tokenized Equities: The bill’s language effectively blocks innovative financial instruments, cutting off growth in digital asset markets.
- Threats to DeFi and Privacy: It grants government agencies sweeping access to individuals’ financial activities in decentralized systems, undermining personal privacy and user autonomy.
- Imbalance in Regulatory Authority: By downgrading the CFTC’s role and centralizing power within the SEC, the draft could lead to overregulation and stifle technological progress.
- Stablecoin Rewards Under Fire: Proposed amendments may outlaw yield mechanisms for stablecoins and enable legacy banks to block fintech rivals, distorting fair competition.
Not All Laws Are Progress
Armstrong stressed that this version is 'worse than the status quo'—a bad bill can do more harm than no bill at all. He remains hopeful, however, that ongoing dialogue between regulators and builders can produce a balanced, forward-looking framework.
He calls for equitable treatment of digital asset innovators, urging that crypto be granted the same regulatory footing as traditional finance. True progress lies not in restriction, but in responsible empowerment.