Shares in crypto exchange company Coinbase (COIN) have dipped in price after the company’s CEO pulled his support for a Senate crypto bill. On January 14, Coinbase CEO Brian Armstrong announced that Coinbase would not support the Senate’s draft legislation on the crypto market structure. The CEO posted to X on Wednesday evening, stating that the bill has too many flaws to support passage.
“After reviewing the Senate Banking draft text over the last 48 hours, Coinbase unfortunately can’t support the bill as written,” Armstrong wrote. The announcement also triggered a falloff for other crypto-based stocks, including Strategy MSTR and Riot Platforms (RIOT). Additionally, after Armstrong’s post, the Senate Banking Committee delayed its discussion of the bill.
Coinbase Pulls Crypto Bill Supports, Stock Falters
Coinbase and Brian Armstrong have served as guidance for the US Government and policymakers for the last few months, especially as the US has become more pro-crypto. Several bills loosening restrictions on digital assets have already been passed in the US. The latest bill would’ve loosened restrictions on the crypto industry even further, but Armstrong pointed out several flaws in the bill.
Furthermore, Senate lawmakers have already proposed over 75 amendments to the bill. The latest proposal suggests that paying stablecoin yield will be banned, although some types of rewards may be allowed. But the language around exactly what kind of rewards would be permitted isn’t straightforward, according to Coinbase. Typically, many would be defeated or withdrawn before they’re added to the actual legislation, so it remains unclear what the finished crypto bill will look like, especially after the Coinbase CEO’s latest statement.
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Coinbase (COIN) stock is down 3.3% to $247.32 at press time. Since the turn of the year, share prices have rebounded, but the stock is down 1% since December 15.