Breaking: Coinbase Withdraws Support for Senate’s Digital asset Bill as Drafts Enter markup Phase
In a sharp turn amid ongoing negotiations over a sweeping digital asset bill,Coinbase has pulled its backing from the Senate Banking Committee’s draft market-structure framework for cryptocurrencies and related products. The move comes as lawmakers push a “manager’s amendment” ahead of an expected markup session later this week.
Coinbase Chief Executive Officer Brian Armstrong voiced strong criticism of the committee’s draft in a post on the social platform X. He said the current text contains “too many issues” and urged participants too strive for a stronger draft that preserves American innovation and investor protection.
The committee, which released the manager’s amendment late Monday, aims to establish a clear regulatory road map for digital assets. Republican leaders described the effort as balancing safeguards for Main Street investors with the goal of enabling a robust crypto industry to operate in the United States.
Armstrong’s assessment highlighted several obstacles he believes the draft creates. He pointed to what he described as a de facto ban on tokenized equities, provisions that could expand government access to users’ financial data within decentralized finance, and an apparent shift in enforcement power away from the CFTC. He also criticized language that could eliminate rewards tied to stablecoins.
“We’ll keep fighting for all Americans and for economic freedom,” Armstrong wrote. “Crypto should be treated on a level playing field with other financial services so we can build this industry safely and with trust in America.”
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In separate remarks, armstrong underscored a forward-looking view, saying he remains hopeful the industry can reach a constructive outcome through continued engagement and collaboration with lawmakers and regulators.
The broader political backdrop includes long-running fundraising activity related to cryptocurrency policy. A May 2024 report identified crypto sector–backed political action committees as among the top fundraisers in the 2024 election cycle, with more than half of the roughly $54 million tally coming from corporate groups such as Coinbase and Ripple Labs. The remainder came from crypto executives and venture capitalists, including Armstrong himself.
Armstrong also has been connected to policy discussions at the highest levels. Reports from November 2024 noted a meeting with the incoming administration’s personnel choices, and by March 2025 he participated in the first national crypto-focused summit held in the country.
As of January, policy-watchers say January remains a crucial period for legislative action on cryptocurrency regulation. Industry watchers describe the session as a key inflection point for how future rules will shape digital-asset markets and the balance between protection and innovation.
Key Facts in Brief
| event | Date | What Happened | Reactions |
|---|---|---|---|
| Coinbase withdraws support | january 14, 2026 | The exchange stops backing the Senate’s draft market-structure bill for digital assets | CEO Armstrong says the bill has “too many issues” and calls for a better draft |
| Manager’s amendment introduced | January 12–13, 2026 | Legislation update ahead of scheduled markup | Committee republicans maintain the bill clarifies rules and protects retail investors |
| Armstrong’s critique | January 14, 2026 | Alleges de facto ban on tokenized equities, DeFi data-access provisions, CFTC erosion, stablecoin rewards removal | Calls for level playing field and safe, trusted industry growth in the U.S. |
| Industry fundraising context | may 2024 onward | Crypto sector PACs emerge among top election fundraisers | Importent corporate contributions from Coinbase, Ripple Labs, and others |
| Recent high-level engagements | 2024–2025 | Armstrong met with an incoming administration’s personnel picks; attended a national crypto summit | Signals ongoing policy dialog between crypto leaders and policymakers |
Evergreen insights for readers
- Regulatory clarity versus innovation: Lawmakers seek clear guidelines for digital assets while industry players warn against overreach that could stifle innovation.
- Balance of power: The role of the CFTC and potential changes to enforcement authorities are focal points in ongoing debates about who should supervise crypto markets.
- Openness and disclosures: Proposals around user data and DeFi operations highlight the push for greater transparency in decentralized ecosystems.
- Political finance dynamics: Crypto-aligned PACs have become influential fundraisers,signaling industry intent to shape policy through political engagement.
Two questions for readers
- What kind of rules would you consider essential to protect investors without hampering innovation in digital assets?
- Should policymakers rely more on existing financial-regulation frameworks or craft new, asset-specific rules for crypto?
Disclaimer: Financial and regulatory information provided in this article is for general informational purposes and should not be construed as investment advice or legal guidance.
Share your thoughts below: do you support a stricter regulatory approach to crypto, or do you favor a lighter touch that spurs growth?
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