Coinbase CEO Brian Armstrong Says US Won’t Become ‘Crypto Capital Of The World’ If One Policy Proposal Passes
Coinbase (NASDAQ:COIN) CEO Brian Armstrong warned that a sweeping new proposal advanced by Senate Democrats is “a bad proposal” that would “set innovation back.”
Senate Democrats Push Sweeping DeFi Broker Rule
The draft, first reported by Politico, reportedly outlines how Senate Banking Committee Democrats plan to classify decentralized finance operations.
The language suggests that firms or individuals providing front-end access to DeFi platforms must register with the Securities and Exchange Commission or the Commodity Futures Trading Commission as brokers.
According to the report, this definition could include “anyone designing, deploying, operating, or profiting from a DeFi front-end,” while protocols that earn no revenue could be considered “sufficiently decentralized” and remain outside the scope of regulation.
Industry lawyers say the proposal, if enacted, would create broad liability and force open-source developers and DeFi startups to register under complex securities rules.
Blockchain Association Slams ‘DeFi Ban’ As Industry Killer
The Blockchain Association blasted the draft rule, warning it could drive the $1 trillion DeFi industry overseas and result in a “ban on DeFi” in America.
Blockchain Association CEO Summer Mersinger said the plan “would effectively ban …
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