Coinbase Withdraws Support for Senate Crypto Market Structure Bill Amid Key Concerns

Coinbase CEO Brian Armstrong announced that the leading U.S. cryptocurrency exchange is withdrawing its support for the U.S. Senate’s proposed crypto market structure bill, citing major concerns with the latest draft. Armstrong shared his stance on social media platform X, stating that the bill, released earlier this week, contains “too many issues” and could leave the crypto industry worse off than the current regulatory environment.

Coinbase has been deeply involved in Washington negotiations around crypto regulation, making this move particularly significant. The Senate Banking Committee is still scheduled to hold a hearing and vote on advancing the legislation, but Armstrong emphasized that the current version is problematic. Among his main objections are what he described as a de facto ban on tokenized equities, restrictive approaches to decentralized finance regulation, unresolved issues involving the Commodity Futures Trading Commission (CFTC), and controversial proposed amendments.

Armstrong stressed that while Coinbase appreciates bipartisan efforts to establish clearer crypto regulations, the company would prefer no legislation over what he called a “bad bill.” He later added that he remains optimistic a better outcome can be achieved through continued dialogue and engagement with lawmakers.

The draft bill has already attracted more than 75 proposed amendments, signaling that negotiations are far from over. Other crypto industry voices are divided. The Digital Chamber, a major U.S. crypto lobbying group, stated it remains supportive of the legislative process and is pushing for targeted improvements. Ripple CEO Brad Garlinghouse also praised the bill, calling it a major step toward regulatory clarity for digital assets.

Beyond industry disagreements, lawmakers are still negotiating sensitive issues such as stablecoin yield rewards, anti-money laundering rules for decentralized finance, registration requirements, and SEC disclosure standards. Ethics provisions are also under scrutiny, particularly from Democrats concerned about potential conflicts involving President Donald Trump and his family.

As debates intensify, banking groups continue to oppose stablecoin rewards, arguing they could divert funds away from traditional lending. With discussions ongoing, the future of U.S. crypto regulation remains uncertain, but the outcome will significantly shape the digital asset market.