Coinbase Withdraws Support for Senate Crypto Bill Amid Policy and Timing Concerns

Coinbase has stepped back from supporting a major piece of cryptocurrency legislation moving through the U.S. Senate, citing a mix of unresolved policy issues and a compressed legislative timeline that left little room for meaningful changes.

On Wednesday, Coinbase CEO Brian Armstrong said the exchange could not back the bill in its current form. His concerns focused on four key areas: how the legislation treats tokenized equities, its approach to decentralized finance, provisions he said could effectively eliminate stablecoin rewards, and the expanded role of the Securities and Exchange Commission.

According to a person familiar with the discussions, the decision was not driven by a single issue. Instead, concerns intensified after the updated bill text was released late Monday. The revised draft, spanning more than 270 pages, introduced several new sections that had not been previously reviewed, including language related to illicit finance.

The timing also proved challenging. Amendments to the bill were due by Tuesday afternoon, and more than 70 were filed ahead of a planned markup on Thursday. With so much new material arriving so late in the process, Coinbase concluded there was not enough time to address its concerns or engage in further discussions with members of the Senate Banking Committee.

More time, the source said, would have allowed for deeper dialogue and potential compromises. Without that, the company determined the legislation was not in the best interest of its customers at this stage.

Later on Wednesday, Senate Banking Committee Chair Tim Scott announced that the markup would be postponed. In a statement, Scott said he had spoken with leaders across the crypto industry, the financial sector, and colleagues from both parties, emphasizing that negotiations were continuing in good faith with the goal of delivering clear regulatory rules.

Reports suggested the bill did not have the necessary votes to advance as scheduled. Democratic Senator Ruben Gallego, a key negotiator, told reporters he could not support the bill as it stands, noting that a planned meeting with Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, did not take place.

Looking ahead, those involved say the pause creates space to refine the proposal. The issues are considered fixable, but they need to be resolved before the next committee markup. The aim, according to one source, is not to achieve a perfect bill, but one that is workable and broadly acceptable.

Despite Coinbase’s withdrawal, other crypto firms and advocacy groups expressed continued support for the legislative effort. Ripple CEO Brad Garlinghouse said the industry remains engaged and optimistic that outstanding issues can be addressed through the markup process.