Coinbase (NASDAQ:COIN) CEO Brian Armstrong took to X today to slam the crypto infrastructure bill, which is scheduled for a markup hearing tomorrow at the Senate Banking Committee. Armstrong did not mince his words:
“After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written. There are too many issues, including: – A defacto ban on tokenized equities – DeFi prohibitions, giving the government unlimited access to your financial records and removing your right to privacy – Erosion of the CFTC’s authority, stifling innovation and making it subservient to the SEC – Draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition We appreciate all the hard work by members of the Senate to reach a bi-partisan outcome, but this version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft. We’ll keep fighting for all Americans and for economic freedom. Crypto needs to be treated on a level playing field with the rest of financial services so we can build this industry in a safe and trusted way in America.”
The loss of one of the digital asset industry’s thought leaders and pioneers undermines the validity of the Senate’s efforts. Coinbase is a trailblazer: it was the first publicly traded crypto exchange and is now on a path to become the “everything app” for trading crypto, securities, prediction markets, and more, representing the future of financial services.
While the legislation is not yet final and must still make its way through the Senate Agriculture Committee, the criticism highlights the difficult process of updating the financial ecosystem to satisfy the diverse constituents who operate in the marketplace.
One of the most discussed issues has been the traditional banking sector’s fear of stablecoins that generate interest for holders. Banks worry that if stablecoins act as savings accounts but with greater liquidity and higher returns, it will destroy the traditional banking model. While banks could compete on a level playing field, it would likely represent a dramatic decline in foundational revenue.
Armstrong added that he remains optimistic that the market will eventually accomplish its goals. He also noted that @Standwithcrypto will be scoring the Senate bill later this week.
Shares of Coinbase traded higher throughout the day, supported by the expectation of workable legislation. Following Armstrong’s public statement, Coinbase shares sank in after-hours trading as enthusiasm diminished.