Major Crypto Platform CEO Opposes Current US Cryptocurrency Regulation Draft

Source: CryptoNewsNet Original Title: BREAKING: Coinbase CEO Withdraws Support for Anticipated US Cryptocurrency Bill – Here’s Why Original Link: The CEO of a certain compliant platform, after reviewing the draft legislation on cryptocurrency market structure prepared by the US Senate Banking Committee, announced that the platform cannot support this regulation in its current form.

The executive stated that some of the clauses in the draft text posed serious risks to the industry.

According to the assessment, the draft effectively bans tokenized shares while also containing provisions in the DeFi space that grant the government unlimited access to financial records and weaken users’ right to privacy. The executive also stated that the draft erodes the powers of the Commodity Futures Commission (CFTC), tipping the regulatory balance in favor of the SEC, which could stifle innovation.

It was noted that some of the proposed changes in the draft could eliminate stablecoin rewards and give banks the power to restrict competition. Arguing that this would lead to worse consequences than the current status quo, the platform’s leader stated, “We would rather have no law than a bad law.”

Nevertheless, the executive stated that they appreciated the efforts of Senate members to reach a bipartisan consensus, and expressed optimism that a more balanced text that meets the needs of the industry could be achieved if negotiations continued.