Coinbase Drops Support for Senate Crypto Bill Over Major Concerns
4.6 Regulation Coinbase has withdrawn support for the Senate's crypto bill, citing concerns over privacy, SEC authority, and stablecoin rewards, and calls for a more balanced regulatory approach.
Coinbase has withdrawn its support for the US Senate's proposed cryptocurrency market structure bill, citing significant concerns with the current draft. The company highlighted issues such as a de facto ban on tokenized equities, provisions that could grant the government broad access to users’ financial data, and an expansion of the Securities and Exchange Commission’s authority at the expense of the Commodity Futures Trading Commission. Coinbase also criticized amendments that would eliminate rewards on stablecoins, arguing this would favor banks and stifle competition and innovation. The company stated that the bill, as written, would be worse than the current regulatory environment and emphasized a preference for no legislation over what it considers a harmful law. Despite these objections, Coinbase expressed appreciation for the Senate's bipartisan efforts and remains hopeful that further negotiations could produce a more balanced and effective regulatory framework for the crypto industry.
