Coinbase CEO Brian Armstrong says he can’t support a major crypto bill making its way through Congress in its current form.

Armstrong says he believes the latest version of the Clarity Act is worse than the current status quo.

He cites multiple key features that are a no go for the largest US crypto exchange.

“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 records and removing your right to privacy
– Erosion of the CFTC’s authority, stifling innovation and making it subservient to the SEC
– Draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition”

Armstrong says the influential exchange will continue to push for improvements to the legislation.

“We appreciate all the hard work by members of the Senate to reach a bi-partisan outcome, but this version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft.

We’ll keep fighting for all Americans and for economic freedom. Crypto needs to be treated on a level playing field with the rest of financial services so we can build this industry in a safe and trusted way in America.”

The Clarity Act is designed to create clear classifications for digital assets, defining roles for the SEC and CFTC while distinguishing between “digital commodities” like Bitcoin and securities.

The changes aim to create new pathways for innovation while protecting consumers through rules for trading, disclosures and registration for market participants like exchanges and brokers.