Coinbase Withdraws Support for Crypto Bill on Eve of Key Senate Vote

Major cryptocurrency exchange Coinbase has unexpectedly announced the withdrawal of its support for a crucial digital asset regulation bill, a move that severely jeopardizes the legislation’s passage just hours before a key procedural vote in the Senate. Coinbase, which had previously been a vocal advocate for clear regulatory frameworks in the U.S., stated that recently added amendments and revisions addressing decentralized finance (DeFi) and self-custody definitions rendered the bill unworkable.

A Coinbase spokesperson confirmed late yesterday that the updated language introduced ‘unnecessary and overly broad compliance mandates’ that would stifle innovation and potentially push decentralized activity offshore. The company emphasized that while it remains committed to reasonable regulation, the current iteration of the bill introduces legal uncertainties that outweigh its benefits.

This withdrawal represents a significant setback for the bill’s sponsors, who had relied on the public support of major industry players like Coinbase to signal stability and consensus to wavering lawmakers. Political analysts suggest the move dramatically increases the likelihood that the bill will fail to secure the required majority during tomorrow’s scheduled floor vote, pushing comprehensive crypto regulation further into the future.

Source: Coinbase Withdraws Support for Crypto Bill on Eve of Key Senate Vote