Coinbase Rejects Crypto Market-Structure Bill

Coinbase CEO Brian Armstrong announced that the company can’t support the current U.S. Senate crypto market-structure bill any longer, saying the draft legislation would be “materially worse than the status quo” for the industry.

The withdrawal of support by one of the largest U.S. crypto exchanges led to the Senate Banking Committee postponing its scheduled markup of the draft bill. Moreover, this comes after months of anticipation around federal crypto regulation.

A Detailed Withdrawal

Coinbase’s shift follows a close review of the Digital Asset Market Clarity Act draft. Which was expected to be a major step toward codifying how digital assets are regulated.

Furthermore, Armstrong explained that the bill contained “too many issues,” including provisions he believes would undermine innovation, restrict tokenized equities, block DeFi freedoms, and limit stablecoin reward structures.

Also, this opposition is significant because Coinbase had previously supported the concept of clearer regulatory frameworks after years of uncertainty.

However, the latest draft, according to Armstrong, deviates from what the industry needs and could inadvertently halt crypto’s future growth.

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.

There are too many issues, including:

– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…

— Brian Armstrong (@brian_armstrong) January 14, 2026

Immediate Impact: Delay and Market Reaction

News of Coinbase’s withdrawal of support quickly rippled through policy circles and the markets. Therefore, the Senate Banking Committee had to postpone its planned markup due to a lack of consensus.

The postponement has been interpreted as a pause to re-evaluate the draft’s language and impact. Moreover, Republican and Democratic lawmakers have stressed that they remain committed to delivering balanced legislation, with more revisions before further votes are scheduled.

For crypto investors and traders, it’s important to consider that some declines in crypto prices were observed as policy uncertainty rose. However, there was no immediate crash or widespread sell-off tied to the bill’s postponement.

Just a Temporary Setback

Coinbase’s rejection of the current market-structure bill is a significant moment in U.S. crypto policy. However, it’s also part of a larger negotiation process.

Therefore, it reflects the challenge of aligning industry innovators, traditional finance, and bipartisan lawmakers around a single regulatory text.

Ultimately, this may improve the final legislation by forcing lawmakers to address important concerns, instead of rushing a flawed framework into law.

Additionally, this delay could lead to a stronger and more sustainable regulatory foundation for crypto in the U.S. One that supports innovation while addressing systemic concerns.