Coinbase CEO Brian Armstrong says he cannot support a major crypto bill moving through Congress in its current form.
Armstrong says he believes the latest version of the Clarity Act is worse than the current status quo.
He mentions several key features that are not allowed for the largest US crypto exchange.
“After reviewing the draft text from the Senate bench over the past 48 hours, Coinbase unfortunately cannot support the bill as written. There are too many problems, including:
– A defacto ban on tokenized shares
– DeFi bans, which give the government unrestricted access to your financial data and revoke your right to privacy
– Erosion of the CFTC’s authority, stifling innovation and subordinating it to the SEC
– Draft amendments that would destroy rewards on stablecoins, allowing banks to ban their competition”
Armstrong says the influential exchange will continue to push for improvements in the legislation.
“We appreciate all the hard work of members of the Senate to achieve a bipartisan outcome, but this version would be significantly worse than the current status quo. We would rather have no bill than a bad bill. Hopefully we can all come to a better design.”
We will continue to fight for all Americans and for economic freedom. Crypto must be treated on a level playing field with the rest of the financial services industry so that we can build this industry in America in a safe and secure manner.”
The Clarity Act is designed to create clear classifications for digital assets, defining roles for the SEC and CFTC while distinguishing between “digital commodities” like Bitcoin and securities.
The changes are intended to create new avenues for innovation while protecting consumers through trading, disclosure and registration rules for market participants such as exchanges and brokers.
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