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Coinbase boss warns: Senators' plan endangers US crypto innovation!
Coinbase CEO Brian Armstrong criticizes the Senate proposal to regulate DeFi and warns of negative consequences for innovation in the US.
Coinbase boss warns: Senators' plan endangers US crypto innovation!
On October 10, 2025, Coinbase CEO Brian Armstrong expressed strong opposition to a proposal from Senate Democrats that seeks to regulate DeFi frontends as brokers. Armstrong described this proposal as a “bad concept” that endangers the innovative strength of the US crypto industry. In his statements, he warned that this plan could effectively ban the development of DeFi in the US, emphasizing: “We will absolutely not accept this.”
Armstrong's criticism resonates with other crypto advocates. They are concerned that the planned regulation could weaken the USA as a location for digital financial innovation. Armstrong noted that legislation is a process and reiterated Coinbase's commitment to working with lawmakers to improve the proposal. The framework of the proposal requires any entity that benefits from a DeFi project's front-end platform to register with the SEC or CFTC and operate as a licensed broker.
Criticism from experts and industry representatives
Blockchain Association CEO Summer Mersinger also expressed concerns about the proposal. She explained that this would “effectively ban” decentralized finance, wallet development and other applications in the United States. Mersinger highlighted that the proposal's formula would be difficult to follow and could lead to development activities being moved abroad.
Jake Chervinsky, chief legal officer at venture firm Variant, supported this view. He explained that the proposal acts like a ban on cryptocurrencies and undermines the market structure. Chervinsky also emphasized that this regulation would not create a favorable outcome for the crypto industry.
The ongoing discussions over the proposal are a sign of tensions between the US government and the crypto community over the regulation of digital financial services. Concerns about possible negative impacts are high, while development and innovation within the industry should continue to be encouraged.
The coming months could be crucial for the future of DeFi in the US, with stakeholders hoping for dialogue with lawmakers to find a solution acceptable to all parties.
For more information on Armstrong's comments, visit Crypto News.