Coinbase CEO Blasts Senate Dems: DeFi Bill Is a Crypto-Killer!

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Ah, the crypto world-where every new proposal feels like an act of war. Brian Armstrong, CEO of Coinbase, has decided to speak his mind about the Senate Democrats’ latest attempt to regulate the DeFi sector. It seems this proposal is the perfect recipe for disaster, one that might derail bipartisan discussions on the much-anticipated crypto market structure legislation. Who knew that bureaucrats could be so clueless about innovation? 🙄

The Coinbase CEO’s Searing Critique

On a charming Friday afternoon, Armstrong took to X to unleash his fury. He warned the crypto industry would “absolutely not accept” this proposal, as it threatens to “set innovation back” and turn the U.S. from a crypto capital into a digital desert. Yes, folks, according to Armstrong, we’re about to enter a crypto dystopia where progress is stifled by politicians who can’t tell a blockchain from a brick. 😆

For those wondering about the drama behind the scenes, Eleanor Terret-bless her soul-reported that Senate Democrats and Republicans are at each other’s throats over a leaked proposal meant to regulate DeFi platforms. This proposal has apparently thrown a wrench in the Responsible Financial Innovation Act (RFIA), leaving the bill teetering on the edge of collapse like a Jenga tower on its last block.

The proposal, formally titled “Preventing illicit finance and regulatory arbitrage through decentralized finance platforms,” aims to create a “clear” regulatory framework. Its noble goal? To make sure no one uses decentralized protocols for money laundering or dodging sanctions. It’s almost as if they’re saying, “We don’t trust anyone, but let’s put some rules in place anyway!” 😒

Then we have Jake Chervinsky, the Variant CLO, who’s clearly had enough. He called the Democrats’ proposal “deeply unserious,” suggesting it’s a thinly-veiled crypto ban with a side of broken promises. Chervinsky explained that if the bill passes, it would make everyone in the crypto world an “intermediary,” requiring Know Your Customer (KYC) rules, and hand unchecked power to the government. So much for “free markets,” huh? 😅

But don’t worry, folks-he did find some positives in the RFIA draft. The Senate Banking Committee’s version of the bill promises to protect software developers from arbitrary regulation and criminal prosecution. This, Chervinsky argues, is the last remaining hope for the bill to avoid an era reminiscent of Gary Gensler. Now that’s a silver lining, right? 🧐

Will the Crypto Market Structure Bill Ever See the Light of Day?

Armstrong, ever the optimist, reaffirmed that legislation is a slow process. But not to worry-he’s not backing down in the fight to preserve economic freedom. Apparently, Coinbase is “committed to engaging” with Congress to help them get it right. Let’s hope they can “get it right” before 2026 rolls around! 😬

Amidst all the chaos, some are beginning to wonder: can the crypto market structure bill actually make it to President Donald Trump’s desk before the end of the year? Eleanor Terret reports that Senate Republicans are growing “frustrated” with Democrats, who have offered little feedback on the two drafts of the bill. Some have even accused them of dragging their feet on setting an official markup session. Sounds like a never-ending game of political hot potato. 🥔

A Senate Banking Committee Communications Director, Jeff Naft, had the perfect response to the situation: “What 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.” Ouch. That’s going to leave a mark! 😬

However, some anonymous sources have claimed that the leaked proposal was “just a starting point,” and not the final word. Democrats, naturally, are not thrilled that their internal draft has seen the light of day. The irony of government transparency, huh? 😂

Finally, Jacques Petit, Director of Communications for Senator Ruben Gallego, put forth the most amusing analogy: “Their demand to set a markup date before text is agreed to is like setting a wedding date before the first date. It’s nonsensical.” Ah, yes, nothing like comparing politics to romance. At least it’s entertaining. 😜

So, as the saga continues, we’re left wondering: Will the crypto legislation make it to the President’s desk this year? Or will it join the ranks of bills lost to time and bureaucracy, never to be seen again? Stay tuned, folks. This is far from over. 😏

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2025-10-11 13:24