{"id":52313,"date":"2025-10-11T10:01:32","date_gmt":"2025-10-11T10:01:32","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=52313"},"modified":"2025-10-11T10:01:32","modified_gmt":"2025-10-11T10:01:32","slug":"coinbase-ceo-warns-crypto-industry-wont-accept-senate-democrats-crackdown-on-defi","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=52313","title":{"rendered":"Coinbase CEO Warns Crypto Industry \u2018Won\u2019t Accept\u2019 Senate Democrats\u2019 Crackdown On DeFi"},"content":{"rendered":"
\n

Brian Armstrong, CEO of Coinbase, has criticized Senate Democrats\u2019 controversial proposal to regulate the DeFi sector, which has reportedly stalled bipartisan talks on the long-awaited crypto market structure legislation.<\/p>\n

Coinbase CEO Slams Democrats\u2019 Proposal<\/h2>\n

In a Friday X post, Coinbase\u2019s CEO warned<\/a> that the crypto industry \u201cabsolutely won\u2019t accept\u201d the Senate Democrats\u2019 proposal on DeFi regulation as it \u201cwould set innovation back, and prevent the US from becoming the crypto capital of the world.\u201d<\/p>\n

For context, crypto journalist Eleanor Terret reported that Senate Democrats and Republicans were allegedly quarreling behind the scenes over a leaked proposal to regulate DeFi platforms in the upper chamber\u2019s version of the crypto market structure bill, the Responsible Financial Innovation Act (RFIA).<\/p>\n

The six-page document, named \u201cPreventing illicit finance and regulatory arbitrage through decentralized finance platforms,\u201d proposed establishing a \u201cclear\u201d regulatory framework for DeFi platforms by \u201cdefining accountability, clarifying oversight, and preventing the misuse of decentralized protocols for illicit finance, sanctions evasion, or to bypass market guardrails.\u201d<\/p>\n

\"Crypto\"<\/p>\n

Jake Chervinsky, Variant CLO, called<\/a> Democrats\u2019 proposal \u201cdeeply unserious,\u201d affirming that the drafted suggestions are \u201cbasically a crypto ban,\u201d with many \u201cfundamentally broken and unworkable\u201d aspects.<\/p>\n

The lawyer argued that the changes to RIFA\u2019s draft text would effectively kill the bill, as it would make everyone in crypto an intermediary, force front-end providers to apply Know Your Customer (KYC) rules to their users, and give agencies<\/a> \u201cunchecked power for selective regulation.\u201d<\/p>\n

\u201cIt lets Treasury regulate anyone with \u2018sufficient influence\u2019 in a DeFi protocol and also lets Treasury define \u2018sufficient influence\u2019 however it pleases,\u201d Chervinsky explained. \u201cIt creates a \u2018restricted list\u2019 for protocols and front-ends that Treasury thinks are too risky, and then makes it a crime for anyone to use them. There is no limiting principle, defense, or recourse. Treasury is all-powerful.\u201d<\/p>\n

\u201cThe RFIA draft got a few key things right,\u201d he stated, a sentiment shared<\/a> by other industry leaders like Uniswap\u2019s CEO, Hayden Adams. Variant\u2019s CLO highlights that the Senate Banking Committee\u2019s draft protects software developers from unjust regulation and criminal prosecution, \u201cpreventing future administrations from returning to the era of Gary Gensler. Without this, there is no bill.\u201d<\/p>\n

Crypto Market Structure Bill At Risk?<\/h2>\n

Coinbase CEO affirmed that legislation is a process and pledged to continue fighting<\/a> for the rights of investors and developers and to \u201cpreserve economic freedom.\u201d He also added that Coinbase leadership is \u201ccommitted to engaging and helping Congress get it right.\u201d<\/p>\n

Amid the backlash, some have debated whether the market structure bill can arrive at President Donald Trump\u2019s desk before the end of the year. Eleanor Terret reported<\/a> for Crypto In America that Senate Republicans are \u201cfrustrated\u201d that Democrats have allegedly offered \u201clittle substantive feedback\u201d on the two published discussion drafts on the legislation and have been reluctant to set an official date for the legislation\u2019s markup session.<\/p>\n

A Senate Banking Committee Communications Director, Jeff Naft, said that \u201cWhat was sent to Republicans was not a legislative offer; the document was not written in legislative text, included multiple incoherent policy ideas, and was not a good-faith effort to engage on market structure.\u201d As a result, negotiations have reportedly stalled.<\/p>\n

However, anonymous sources told Terret that the leaked proposal was \u201cmeant as a starting point for discussions, not a final position,\u201d and Democrats are seemingly frustrated that the document was made public.<\/p>\n

Jacques Petit, Director of Communications for Senator Ruben Gallego, stated<\/a> that \u201cTheir demand to set a markup date before text is agreed to is like setting a wedding date before the first date. It\u2019s nonsensical.\u201d<\/p>\n

Terret noted that the longer this incident drags on, the more likely the crypto legislation won\u2019t arrive at the President\u2019s desk this year. If it spills over to 2026, it risks losing momentum, as Congress shifts its main focus from digital assets regulation to the midterm elections.<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Brian Armstrong, CEO of Coinbase, has criticized Senate Democrats\u2019 controversial proposal to regulate the DeFi sector, which has reportedly stalled bipartisan talks on the long-awaited crypto market structure legislation. Coinbase CEO Slams Democrats\u2019 Proposal In a Friday X post, Coinbase\u2019s CEO warned that the crypto industry \u201cabsolutely won\u2019t accept\u201d the Senate Democrats\u2019 proposal on DeFi […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-52313","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/52313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=52313"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/52313\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=52313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=52313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=52313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}