Coinbase has pulled its support for the draft of the Digital Asset Market Structure Bill introduced by the Senate Banking Committee.
During a discussion on January 14, Coinbase CEO Brian Armstrong expressed concerns, stating, “It’s better to have no invoice than a fraudulent invoice.” He hopes that a better draft can be achieved.
Late on January 12, the Senate Banking Committee unveiled the Administrator’s Amendment related to digital asset legislation, ahead of a markup meeting set for January 15.
According to a press release from committee Republicans, the bill looks to “establish clear rules regarding digital assets while safeguarding Main Street retail investors.”
In his comments, Armstrong noted there are “too many problems” with the current draft. He highlighted issues such as a potential ban on tokenized stocks, restrictions on DeFi that could expose users’ financial records, and a perceived erosion of government authority. He also referenced the Commodity Futures Trading Commission’s (CFTC) draft amendment suggesting the elimination of stablecoin rewards.
Armstrong reiterated his commitment, stating, “We will continue to fight for economic freedom for all Americans.” He emphasized that cryptocurrency should compete equally with other financial services to build a trustworthy industry in the U.S.
In a follow-up post, he shared a sense of optimism, saying, “I’m actually very optimistic that with continued effort we can get to the right outcome. We’re going to continue to show up and work with everyone to get there.”
Reports from May 2024 indicated that the crypto sector significantly contributed to political action committees (PACs), ranking among the top three fundraisers in the 2024 election period. Over half of the roughly $54 million raised by crypto PACs came from corporate spending, including contributions from Coinbase and Ripple Labs, while the remainder came from crypto executives and venture capitalists, including Armstrong himself.
In November 2024, Armstrong had a meeting with then-President-elect Donald Trump regarding future governmental personnel matters.
Looking ahead, Armstrong is set to participate in Japan’s first crypto summit in March 2025.
It has been reported that this month is pivotal for the Senate’s efforts to regulate the virtual currency market.
