Article Summary
Coinbase has withdrawn its support for a Senate Banking Committee crypto bill, warning that the draft could restrict innovation, weaken financial privacy, and limit competition in digital finance. The exchange cited concerns over potential bans on tokenized equities, new restrictions on DeFi, reduced authority for the CFTC, and proposed limits on stablecoin rewards. Coinbase says the bill, as written, would leave the industry worse off than the current regulatory environment.
🚨⚖️ Why Coinbase Opposes the Senate Crypto Draft
Coinbase has officially withdrawn its political support from a Senate Banking Committee draft bill aimed at reshaping U.S. crypto regulation, arguing that the proposal would damage innovation and undermine financial freedoms. After reviewing the text over the past 48 hours, the exchange said it could no longer stand behind legislation it believes is worse than the current regulatory status quo.
🔗📉 Concerns Over Tokenized Equities and DeFi Restrictions
A central issue for Coinbase is what it describes as a de facto ban on tokenized equities, a sector viewed as critical to modernizing capital markets through blockchain. The company also raised alarms about new restrictions on decentralized finance, or DeFi, warning that the bill could grant government agencies sweeping access to personal financial data and weaken long-standing privacy protections for users.
🏛️⚖️ Regulatory Power Shift Sparks Alarm
Coinbase further criticized the draft for eroding the authority of the Commodity Futures Trading Commission while strengthening the role of the Securities and Exchange Commission. The exchange argues this shift would subject emerging crypto technologies to outdated securities frameworks, slowing innovation and discouraging U.S.-based development in favor of overseas markets.
🏦💸 Stablecoin Rewards and Banking Competition at Risk
Another flashpoint involves proposed amendments that could eliminate rewards on stablecoins. Coinbase says this would give traditional banks the power to suppress competition from crypto-native financial products, limiting consumer choice and reinforcing existing market dominance in the financial sector.
🇺🇸🚀 What This Means for U.S. Crypto Regulation
While acknowledging the bipartisan effort behind the bill, Coinbase concluded that the current version would harm the industry more than help it. “We’d rather have no bill than a bad bill,” the company said, reaffirming its commitment to advocating for balanced crypto regulation that protects privacy, supports innovation, and ensures digital assets compete on a level playing field with traditional financial services in the United States.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. This article was created with AI assistance and curated by DNIR Staff for accuracy and editorial standards. Source: Digital News & Investigative Reports (DNIR) — cnirbc.com
