{"id":59503,"date":"2026-01-15T09:35:47","date_gmt":"2026-01-15T02:35:47","guid":{"rendered":"https:\/\/hbbgroup.net\/coinbase-pulls-support-for-crypto-bill-no-bill-better-than-bad-bill\/"},"modified":"2026-01-15T09:35:47","modified_gmt":"2026-01-15T02:35:47","slug":"coinbase-pulls-support-for-crypto-bill-no-bill-better-than-bad-bill","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/coinbase-pulls-support-for-crypto-bill-no-bill-better-than-bad-bill\/","title":{"rendered":"Coinbase pulls support for crypto bill: ‘no bill’ better than ‘bad bill’"},"content":{"rendered":"
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Update (Jan. 15, 2:32 am UTC): This article has been updated to include additional commentary from Coinbase chief policy officer Faryar Shirzad.<\/p>\n

Major US crypto exchange Coinbase says it has withdrawn its support for the Digital Asset Market Clarity Act, with CEO Brian Armstrong arguing that it would cause far more harm than good to the crypto industry in its current form.<\/p>\n

\u201cThis version would be materially worse than the current status quo. We\u2019d rather have no bill than a bad bill. Hopefully we can all get to a better draft,\u201d Armstrong said<\/a> in an X post on Wednesday.<\/p>\n

\u201cAfter reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can\u2019t support the bill as written,\u201d Armstrong said.<\/p>\n

Coinbase CEO raises several concerns in draft bill<\/h2>\n

Armstrong flagged several concerns, including what he described as a \u201cdefacto ban\u201d on tokenized equities and sweeping restrictions on decentralized finance, arguing the proposal would grant the government \u201cunlimited access\u201d to financial records and raise serious privacy risks for consumers.<\/p>\n

He also argued that the draft takes power away from the Commodity Futures Trading Commission, slows innovation, and hands more authority to the US Securities and Exchange Commission, which is a major concern for the crypto industry given the SEC\u2019s \u201cregulation by enforcement\u201d approach under the Biden administration.<\/p>\n

\"Coinbase,
Source: <\/em>Ryan Adams<\/em><\/a><\/figcaption><\/figure>\n

Armstrong also echoed a fear shared by many in the industry that the current draft could \u201ckill rewards\u201d on stablecoins and is designed to shield banks from competition.\u00a0<\/p>\n

Banking lobbyists have warned that offering users<\/a> roughly 5% risk-free yields on stablecoins could trigger a \u201cdeposit flight,\u201d with billions pulled from low-interest bank accounts.<\/p>\n

Industry participants are divided on the outcome<\/h2>\n

ETF analyst James Seyffart commented<\/a> on Armstrong\u2019s post, saying this is \u201cnot what we wanna see\/hear with regard to CLARITY.\u201d <\/p>\n

\u201cThis industry needs a market structure bill,\u201d Seyffart said.<\/p>\n

Coinbase chief policy officer Faryar Shirzad told<\/a> CNBC on Wednesday that \u201cwe understand that the bank lobby is very good at persuading members of Congress to protect its incumbency.\u201d<\/p>\n

\u201cOur focus is on protecting the interest of consumers and that means making sure there are as few frictions as possible on the adoption of stablecoins,\u201d Shirzad said.<\/p>\n