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The CEO of Coinbase, Brian Armstrong, said that the exchange will not comply with the new bill For cryptocurrencies in the Senate as it is now bringing uncertainty to Washington’s latest attempt to regulate the digital economy.
Legislators introduced the process earlier this week to clarify when tokens are considered securities or assets, and put oversight of the cryptocurrency markets to the Commodity Futures Trading Commission, which is important for many companies.
spread Armstrong disagreed on Wednesday after reviewing the text, writing: “After reviewing the Senate Banking Committee’s policy over the past 48 hours, Coinbase unfortunately cannot support the currency in its current state.”
Armstrong warns of the dangers of tokenization, decentralized currencies, and privacy
He said that the document has many problems, including what he described as a de facto ban on tokenized stocks, restrictions on decentralized money and privacy, and changes that would weaken the CFTC in ways that could put technology at the mercy of the SEC.
Armstrong also criticized the potential to reduce rewards tied to stablecoins, which are at odds in the growing battle between banks and cryptocurrency companies over whether yields match deposit products.
We appreciate the senators’ efforts to achieve bipartisanship, but this model could be worse than it is now. We’d rather not have a bill than a bad bill. We believe that we can all make better writing.
The bill does not allow cryptocurrency companies to pay interest to consumers simply because they are stablecoin owners, although it still allows rewards to be given for other things such as making payments or joining loyalty programs, and Disclosure of the rules established by the Securities and Exchange Commission and the CFTC.
The cryptocurrency sector is watching closely as the bill enters the critical phase
Coinbase’s position is important, as the company has played a major role in market discussions and is a major spender in pro-crypto politics. The Senate Banking Committee was scheduled to begin debating the bill at 10 a.m. EST Thursday, but that session was adjourned. Then .
In other words, Galaxy said that the Senate’s banking bill goes beyond the Digital Assets Market Clarity Act approved by the House of Representatives in terms of illegal money, and warns of … It could increase the Treasury Department’s access to cryptocurrency transfers Through the administration of new special measures.
Galaxy compared the authority to tools created after the September 11 attacks under the Patriot Act, saying that the Treasury can use the authority in foreign jurisdictions and procedures if it identifies areas, organizations or other business groups as having serious concerns about spending money.
The push for the plan in the Senate comes as the Trump administration shows a tone of support for some parts of the industry, and as lawmakers try to replace the uncertainty caused by enforcement with clear lines on monitoring, broadcasting and market behavior.
For the cryptocurrency markets, the next few days will determine the situation: either the legislators will water down the law to keep the big platforms on their side, or the bill will start slowly again, leaving the companies to deal with the same process of government regulations and court battles that they have had for years.
A note Coinbase CEO raises concerns about US cryptocurrency bill appeared for the first time Cryptonews Arabic.
