The CEO of a compliant platform withdraws support for the U.S. Senate cryptocurrency bill, believing the current situation is better.

Source: Yellow Original Title: Coinbase CEO Brian Armstrong withdraws support for Senate crypto bill, calls it worse than the current situation

Original Link: A compliance platform CEO stated that the company no longer supports the current form of the cryptocurrency market structure bill in the U.S. Senate, revealing growing disagreements between lawmakers and the crypto industry on digital asset regulation.

The CEO concluded within the past 48 hours after reviewing the draft from the Senate Banking Committee that the bill will be “significantly worse than the status quo.”

While acknowledging bipartisan efforts behind the legislation, he pointed out that the company prefers not to pass any law and is reluctant to support a framework that he believes would harm innovation and competition in the U.S. crypto sector.

Concerns about tokenization, DeFi, and stablecoins

In a social media statement, the CEO described several provisions he believes make the bill unacceptable in its current form.

He argued that the draft effectively bans tokenized stocks, restricts decentralized finance by expanding government access to user financial data, and diminishes the authority of the Commodity Futures Trading Commission (CFTC), making it subordinate to the Securities and Exchange Commission (SEC).

The CEO also criticized the proposed amendments that would limit stablecoin rewards, claiming such measures would favor banks by restricting competition for payment and yield products within the crypto ecosystem.

Terms related to stablecoins have become one of the most controversial elements in the Senate draft, with banking groups warning that rewards could lead to withdrawals of deposits from insured institutions, while crypto firms argue that banning these rewards would be anti-competitive.

Despite withdrawing support, the CEO remains optimistic that lawmakers can reach a better outcome through continued negotiations and engagement.

Legislation aimed at bringing clarity after years of regulatory uncertainty

The Senate draft is part of a broader effort to establish a legal framework for the cryptocurrency market after years of enforcement-based regulation.

Lawmakers have been trying to clarify when digital assets are considered securities or commodities and define the regulatory authority between the SEC and CFTC — a key issue following high-profile enforcement actions and multiple exchange collapses.

Earlier this week, the Senate Agriculture Committee set a timetable for releasing its own market structure text and plans to hold amendments by the end of the month, indicating progress toward formal legislative debate.

Industry executives have previously stated that clearer legal standards could reduce legal risks and encourage institutional participation, provided the framework offers certainty rather than new ambiguities.