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Coinbase leadership is pushing back on crypto legislation now moving through Congress. The concern centers on how the bill would reshape market structure, oversight, and competition across digital assets in the United States.
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Brian Armstrong said on X that the latest Senate Banking Committee version of the Clarity Act fails to improve crypto regulation and instead creates new barriers. After reviewing the draft, Coinbase concluded the bill would leave the industry worse off than operating under current law.
Armstrong outlined several provisions he views as unacceptable. He pointed to language that would effectively block tokenized equities, limit decentralized finance activity, and expand government access to user financial records. He also warned that privacy protections would weaken under the proposal.
Another concern centers on regulatory authority. Armstrong said the bill would reduce the role of the Commodity Futures Trading Commission, shifting power toward the Securities and Exchange Commission. In his view, that shift would slow innovation and place digital markets under a single regulatory lens.
He also criticized draft amendments that could eliminate rewards tied to stablecoins, giving banks the ability to block competition from non bank issuers.
“After reviewing the Senate Banking draft text over the last 48 hours, Coinbase unfortunately can’t support the bill as written. There are too many issues, including:
The Clarity Act aims to set clearer boundaries for digital asset oversight. Lawmakers designed the bill to define when assets qualify as securities and when they fall under digital commodity treatment. Under that structure, assets like Bitcoin would sit outside securities regulation, while other tokens could trigger disclosure and registration requirements.
The proposal also attempts to establish rules for trading venues, brokers, and exchanges, with consumer protection as a stated goal. Supporters argue clearer classifications would reduce uncertainty and open new paths for innovation.
Armstrong said Coinbase will continue pushing for revisions rather than accepting the bill as written.
“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 company says the draft restricts tokenization, weakens privacy, and shifts too much power away from the CFTC.
No. Coinbase supports clearer rules but wants changes that protect competition and innovation.
Coinbase plans to lobby lawmakers for revisions as the legislation continues moving through Congress.