TradingKey - The crypto market structure bill has encountered opposition led by Coinbase and is currently stalled, but it is expected to eventually pass and propel the crypto market forward.
According to crypto journalist Eleanor Terrett disclosed on January 15, the U.S. Senate Banking Committee announced the cancellation of the market structure adjustment meeting originally scheduled for January 16, with no new date set yet. Reportedly, the cancellation of this meeting is related to the cryptocurrency exchange Coinbase ( COIN ).
On January 15, Coinbase CEO Brian Armstrong, on social media platform X issued a statement that he cannot support the current version of the crypto market structure bill, citing numerous issues within the bill, including the presence of tokenized stock bans, restrictions on DeFi, the stifling of stablecoin reward mechanisms, and allowing banks to block competitors, among other things. Brian Armstrong stated, "This draft is worse than the status quo," and that he would rather have no bill than a bad one.
In fact, after U.S. Senate Banking Committee Chairman Tim Scott released the text of the bill, it also drew strong opposition from oversight and consumer groups, because the bill fails to include crypto conflict-of-interest provisions for the president and government officials, and ethical issues surrounding Trump and his family's crypto business have not been effectively addressed.
Despite the opposition to the crypto market structure bill led by Coinbase, many institutions remain supportive. Currently, a16z, Circle ( CRCL ), Kraken, The Digital Chamber, Ripple ( XRP ), and Coin Center have publicly expressed support.
Furthermore, some individuals oppose Coinbase's stance, such as Securitize CEO Carlos Domingo, Dinari CEO Gabe Otte, and Superstate General Counsel Alexander Zozos, who argue that the bill does not stifle tokenized stocks. Among them, Carlos Domingo stated, "The draft does not kill tokenized stocks; it merely clarifies that they remain securities and must follow existing rules, which is a crucial step in integrating blockchain into traditional markets."
Compared with mere crackdowns and negation, the bill still represents a significant step forward for cryptocurrency development, directly benefiting sectors such as tokenization, DeFi, and stablecoins, driving their orderly development. However, the bill's stance is more inclined toward the interests of certain parties, such as banks and traditional financial institutions, meaning its focus remains on protecting traditional financial interests.
Who the crypto market structure bill supports more and whose interests it protects is a question of fairness and the result of a power struggle between traditional and crypto finance. Currently, the outcome is not yet fully determined, and both sides will continue to advocate for their respective interests.
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