Coinbase CEO Brian Armstrong said the company withdrew support for a major crypto bill after identifying provisions it believed could harm consumers and competition.
Speaking to CNBC, Armstrong said the decision came after a late review of the draft legislation revealed unexpected and problematic elements.
“You can’t have banks come in and try and kill their competition at the expense of the American consumer,”
Brian Armstrong said.
Armstrong said Coinbase remained engaged in negotiations until the final stages of the drafting process.
He said allowing the bill to advance in its existing form could have been “catastrophic” for everyday users.
The Senate Banking Committee cancelled a planned markup session shortly after Coinbase publicly opposed the bill.
Armstrong said the pause was intended to bring lawmakers back to the table rather than derail crypto legislation entirely.
He said a revised draft could emerge within weeks and remain a top priority for the industry.
Armstrong reiterated that Coinbase would prefer no legislation over what he described as a “bad bill.”
He warned the draft could have effectively eliminated several Coinbase products currently available to customers.
Armstrong said banks should not be allowed to use regulation to suppress competition from crypto firms.
He argued that stablecoins could offer consumers higher returns than traditional savings accounts.
“We are going to keep fighting for our customers’ rights and the 52 million Americans that use crypto every day,”
Brian Armstrong said.