Coinbase CEO Opposes Senate Proposal on DeFi Regulation
Coinbase CEO Brian Armstrong has criticized a Senate Democratic proposal that aims to regulate DeFi front-ends as brokers. He believes this plan could harm U.S. crypto innovation.
Armstrong shared his thoughts on X, calling the proposal “bad” adn stating, “We won’t accept this.” He fears it will hinder innovation and prevent the U.S. from becoming a global crypto leader. However, he acknowledges that legislation is a process and is willing to work with lawmakers to improve the proposal.
Other crypto advocates share ArmstrongS concerns. Summer Mersinger, CEO of the Blockchain Association, warns that the proposal could effectively ban DeFi and wallet development in the U.S. She says the language is too challenging to comply with and could push responsible development overseas.
Jake Chervinsky, chief legal officer at Variant, agrees. he believes the proposal is akin to a crypto ban. Both Mersinger and Chervinsky urge policymakers to continue bipartisan discussions and avoid stifling technological progress.
The proposed framework, reportedly circulated among Senate Democrats, suggests that companies or individuals profiting from DeFi platforms should register with the SEC or CFTC and operate as licensed brokers. This is part of broader crypto market structure legislation.
