Haciyev Reşit 
A bill prepared to regulate the cryptocurrency market in the United States is, in its current form, no longer supportable according to statements from Coinbase CEO Brian Armstrong. After reviewing the draft, Armstrong stated that it poses serious risks to the industry, particularly in areas such as tokenized assets, DeFi applications, and stablecoin rewards. He emphasized that certain provisions in the text could weaken user privacy and suppress financial innovation, stressing that Coinbase cannot approve the regulation in its current state.
Risks Contained in the Draft Bill
Brian Armstrong noted that some provisions in the draft effectively impose a ban on tokenized stocks. In addition, he highlighted that the text includes regulations that undermine user privacy within the DeFi (decentralized finance) space. Armstrong also stated that the draft limits the authority of the Commodity Futures Trading Commission (CFTC), creating an imbalance in favor of the Securities and Exchange Commission (SEC), which could suppress financial innovation. According to the CEO, these provisions could negatively impact the sector’s sustainable growth and damage investor confidence.
Some of the proposed changes in the draft could completely eliminate rewards provided to stablecoin users and increase banks’ competitive advantage, potentially leading to monopolization in the sector. Armstrong argued that this outcome could be even worse than existing regulations and disrupt the balance of the crypto market. Emphasizing the importance of sustainability and innovation, the Coinbase CEO stated, “We would rather have no law than a bad law.” This remark once again brought the impact of U.S. crypto regulations on investor confidence and market dynamics into focus.
Optimistic View on Negotiations
Armstrong expressed appreciation for bipartisan efforts among members of the U.S. Senate to reach a compromise. He indicated that continued negotiations could result in a more balanced legislative text that better meets the needs of the industry and supports innovation.
“There are provisions that pose risks to the industry. Negotiations could open the door to a more balanced regulation.”
— Brian Armstrong, Coinbase CEO
Armstrong’s comments once again highlight the critical importance of regulatory processes for investor trust and innovation in the crypto market.
Assessment
Brian Armstrong’s statements shed light on the potential risks and impacts of crypto regulations in the United States. The draft bill includes restrictive provisions affecting tokenized assets and DeFi. However, ongoing negotiations increase the likelihood of a more balanced law that supports innovation. These developments are of critical importance for crypto investors and companies operating in the blockchain technology sector.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.