Coinbase withdraws support for Senate’s crypto bill, leading to a delayed vote as key issues with the draft are raised.
The U.S. Senate Banking Committee has postponed its vote on the crypto market structure bill.
This comes after Coinbase CEO Brian Armstrong announced that the company could not support the bill in its current form.
The bill, which aimed to regulate the crypto market, now faces significant changes before it can be approved.
Coinbase Pulls Support for Senate Crypto Bill
On January 14, 2026, Coinbase CEO Brian Armstrong stated that the company would not support the Senate’s crypto bill.
Armstrong highlighted key issues with the bill, specifically a “de facto ban on tokenized equities.”
He argued that the bill could severely limit the use of blockchain technology for tokenizing real-world assets like stocks, potentially stalling innovation in the industry.
Another major concern was the proposed regulation of decentralized finance (DeFi).
The bill would give the government access to users’ financial records, which could undermine the privacy of DeFi platforms.
Armstrong noted that this move would harm user privacy, a core principle of decentralized finance.
Additionally, Armstrong criticized the bill’s impact on the Commodity Futures Trading Commission (CFTC).
He argued that the bill would reduce the CFTC’s authority and increase the SEC’s role.
This shift could limit innovation and slow progress in areas where the CFTC currently has jurisdiction, such as derivatives and commodities.
Senate Postpones Vote on Controversial Crypto Bill
In light of Coinbase’s announcement, the Senate Banking Committee decided to delay the markup of the crypto bill.
The bill, which was meant to provide a framework for regulating tokenized assets and DeFi platforms, now faces a reset.
Lawmakers will need to address the issues raised by Coinbase and other industry players before moving forward.
This delay has cast uncertainty over the timing of the bill’s passage.
Without a clear path forward, the crypto community and lawmakers are left to reconsider key provisions.
The Senate now faces the challenge of finding a compromise that balances regulation with innovation in the fast-evolving crypto space.
As a result, the committee is expected to review the bill more thoroughly and work on revisions.
The delay gives both regulators and industry players a chance to reach a more agreeable version.
However, it is unclear how long this process will take or what changes will be made to the current draft.
Related Reading: Coinbase May Rethink Backing Crypto Bill, Bloomberg Reports
Industry Pushback Prompts Bill Revisions
The delay in the Senate Banking Committee’s vote reflects strong pushback from the crypto industry.
Coinbase’s withdrawal of support is part of a broader effort to ensure that crypto regulations allow for innovation.
Industry players argue that the current bill could hinder the growth of the market rather than support it.
With concerns over privacy and regulatory authority, the crypto community is pushing for a more balanced approach.
Many believe that the bill needs to address consumer protection without stifling the growth of decentralized systems.
This ongoing debate will likely shape future crypto regulations in the United States.
As the Senate works to address these concerns, it is clear that the bill needs revisions.
The goal will be to create a regulatory framework that supports innovation while also protecting investors.
The crypto industry will continue to monitor the situation closely as lawmakers work toward a more suitable bill.
Source: https://www.livebitcoinnews.com/senate-delays-crypto-market-bill-after-coinbase-withdraws-support/
