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Coinbase CEO Withdraws Support for U.S. Crypto Market Structure Bill

Coinbase CEO Withdraws Support for U.S. Crypto Market Structure Bill

Brian Armstrong cites bans on tokenized stocks, DeFi restrictions, and weakened CFTC authority as reasons for rejecting the proposed U.S. crypto market bill.

Fact Check
The evidence strongly and consistently supports the statement. One source from Phemex directly reports that the Coinbase CEO has withdrawn support for the Senate crypto bill, even providing a direct quote calling the bill 'worse than the status quo'. This primary claim is heavily corroborated by multiple other high-authority sources. A CoinDesk news analysis and a Bloomberg report both establish the motive for this action, detailing a conflict over stablecoin provisions that Coinbase views as harmful to its business. Furthermore, very recent social media posts from CoinDesk, a credible industry news outlet, confirm that last-minute changes to the bill were 'prompting' the CEO to 'threaten' action. This progression from dissatisfaction to threats to a direct report of withdrawal creates a cohesive and credible narrative. There are no contradictions in the provided sources; they all point to the same conclusion. The combination of a direct claim and strong, consistent, corroborating evidence makes the statement highly probable.
Summary

Coinbase CEO Brian Armstrong announced that the company has withdrawn its support for the current U.S. cryptocurrency market structure bill, warning it could be worse than existing regulations. He criticized provisions banning tokenized stocks, limiting decentralized finance (DeFi), and reducing the Commodity Futures Trading Commission’s regulatory powers. Armstrong warned these issues risk delaying progress on legislative reform. The announcement adds to previous concerns over privacy risks and stablecoin restrictions, intensifying the debate ahead of the Senate Banking Committee’s upcoming hearing and vote.

Terms & Concepts
  • Crypto Market Structure Bill: Proposed legislation aimed at defining regulations and operational frameworks for cryptocurrency markets in the United States.
  • Commodity Futures Trading Commission (CFTC): An independent U.S. agency that regulates derivatives markets, including futures, swaps, and certain digital asset-related products.
  • Decentralized Finance (DeFi): A blockchain-based financial system that operates without traditional intermediaries, offering services like lending, trading, and asset management through smart contracts.