Coinbase CEO Brian Armstrong Opposes Crypto Bill Over Consumer Protection Concerns

Coinbase CEO Brian Armstrong said the company made a last-minute decision to oppose a major U.S. digital assets bill after identifying provisions it believes could harm consumers and undermine fair market competition. Speaking in a CNBC interview, Armstrong emphasized that the core issue was preventing traditional banks from using regulation to stifle competition from crypto companies at the expense of American consumers.

Armstrong explained that Coinbase and other crypto firms had participated in negotiations until very late in the legislative process. However, after reviewing the full draft of the bill, which was released close to midnight earlier in the week and spanned hundreds of pages, the company discovered elements that raised serious red flags. According to Armstrong, several provisions were unexpected and could have been damaging if the bill had moved forward without revisions.

Following Coinbase’s public withdrawal of support, the U.S. Senate Banking Committee canceled a planned markup of the crypto market structure bill. Committee Chairman Tim Scott confirmed that the markup was postponed with no new date scheduled, highlighting the fragile state of negotiations around crypto regulation in the United States.

Armstrong warned that allowing the legislation to advance in its current form could have been “catastrophic” for everyday consumers. He stressed that Coinbase’s opposition was not meant to derail crypto regulation entirely, but rather to push lawmakers back to the negotiating table and allow time for meaningful changes. He said he expects a revised draft to emerge and hopes discussions could resume within weeks.

A major point of contention involves stablecoins and competition with banks. Armstrong argued that banks should not be allowed to use regulation to block innovation, noting that stablecoins can offer consumers significantly higher returns compared to traditional savings accounts. He pointed out that while average bank savings rates hover around 14 basis points, stablecoin rewards can reach around 3.8%.

Addressing financial stability concerns, Armstrong said stablecoins are fully backed one-to-one with reserves and, under proposals like the GENIUS framework, would be held in short-term U.S. Treasurys. He added that poorly designed rules could eliminate several Coinbase product lines, stating he would rather see no bill passed than one that harms consumers and competition.

Armstrong reaffirmed that crypto legislation remains a top priority and said Coinbase will continue advocating for policies that protect consumers and support the more than 52 million Americans who use crypto daily.