Coinbase Withdraws Support Over Crypto Legislation Concerns
- Coinbase withdraws support for Senate crypto bill draft.
- Brian Armstrong accuses banks of lobbying against the bill.
- Potential impact on crypto’s regulatory environment.
Coinbase CEO Brian Armstrong claims US banks are lobbying against President Trump’s crypto agenda via a Senate Banking Committee draft bill, impacting legislative discussions.
This event highlights tensions in crypto regulation, potentially affecting market dynamics and driving broader industry pushback against banking influence on digital currency legislation.
Coinbase Withdraws Support Over Crypto Legislation Concerns
Brian Armstrong, CEO of Coinbase, has accused major U.S. banks of lobbying to undermine President Trump’s pro-crypto agenda. In response, Coinbase has decided to withdraw support for a Senate Banking Committee draft bill.
The accusations centered on efforts to introduce provisions banning tokenized securities, prohibiting DeFi, weakening the CFTC, and eliminating stablecoin yields. Armstrong stated, “The banks are really coming and trying to undermine the president’s crypto agenda,” adding, “They’re trying to protect their own profit margins, taking money out of the pockets of hardworking, average Americans and putting it into the coffers of big banks hitting record profits.” – Fox Business
The decision by Coinbase might impact the legislative process and market perception of crypto regulations. Major U.S. banks allegedly aim to protect their profit margins through their lobbying efforts.
The potential financial implications include restrictions on stablecoin yields, which could affect market dynamics. Senator’s support and industry’s reaction may alter regulatory outcomes, affecting clarity for BTC and ETH.
Withdrawal by Coinbase highlights tensions between the crypto industry and traditional financial institutions. Market players continue to grapple with the evolving regulatory landscape.
Historical actions like the GENIUS Act contrast the current efforts to regulate stablecoin yields, signaling a shift in regulatory approach. Industry stakeholders remain watchful as the Senate Banking Committee draft awaits further review.
