‘Worse Than Status Quo’: Coinbase CEO Rejects Senate Bill

Cover image via U.Today Read U.TODAY on Google News The four dealbreakers 52% chance of passage Confident diplomacy Advertisement Coinbase CEO Brian Armstrong has publicly rejected the latest draft of the Digital Asset Market Structure Act. The highly influential crypto boss claims that it is "materially worse than the current status quo." 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 Armstrong concluded that the bill contained "too many issues" to support. HOT Stories Ripple CEO Optimistic About Crypto Market Structure Bill Crypto Market Review: XRP Market Anomalies, Ethereum at $3,300 Inflection Point, Shiba Inu Trillion-Unit Potential Kashkari: Crypto Is ‘Basically Useless’ U.Today Crypto Digest: XRP Jumps 1,122% in Liquidation Imbalance, Peter Brandt Predicts Historic Bitcoin Breakout, Ethereum Holder Bitmine Hits $14 Billion Milestone Notably, his scathing was delivered just hours before the committee was set to vote. It is widely credited with forcing the indefinite delay of the markup. Advertisement The four dealbreakers The first provision that Armstrong took issue with is a “de facto ban” on tokenized equities. The ban effectively kills the growing "Real World Asset" (RWA) space, making it challenging for companies to issue stocks or bonds on a blockchain. Secondly, the bill reportedly contains strict prohibitions on Decentralized Finance (DeFi) that would grant the government "unlimited access" to user financial records. Armstrong has raised privacy-focused concerns. Advertisement You Might Also Like Tue, 01/13/2026 - 10:14 Coinbase CEO Explains Crucial Thing About Crypto Wallets By Yuri Molchan Thirdly, Armstrong claims that the bill could weaken the CFTC. Lastly, the draft amendments would kill stablecoin rewards, which appears to be the main sticking point for Armstrong. 52% chance of passage Coinbase withdrawing its support has caused a drop in the Polymarket odds. However, they remain above 50% despite the fallout. Smart money likely views Coinbase CEO Brian Armstrong’s "rejection" as a bluff. Traders assume that the White House will exert pressure on the Senate Banking Committee to compromise with the industry. Confident diplomacy In the meantime, Galaxy Digital CEO Mike Novogratz has adopted a stance of diplomatic optimism. Novogratz urged the industry to remain calm, claiming that the setback was a normal part of the "tense" final stages of lawmaking. "I have spoken to over 10 senators on both sides of the aisle in the past 24 hrs and I believe they all are working in good faith to get something done.   Always gets tense at the end," he said. #Brian Armstrong