Coinbase CEO and Industry Leaders Slam Senate Democrats’ DeFi Proposal

TheCryptoTimesPublicado em 2025-10-10Última atualização em 2025-10-10

Coinbase CEO Brian Armstrong has fiercely criticized a leaked Senate Democrats’ proposal targeting decentralized finance (DeFi), calling it a “bad proposal” that could derail U.S. leadership in the crypto sector. 

The new proposal imposes strict regulations, including a Treasury-managed restricted list for high-risk DeFi protocols and Know Your Customer (KYC) requirements for non-custodial wallets. In a latest post on X, Armstrong warned that these new measures will risk stifling innovation and driving development overseas. 

Widespread Criticism from the Crypto Community

Besides Armstrong, the proposal has sparked a widespread backlash from industry leaders, including Blockchain Association CEO Summer Mersinger, who argue it effectively bans DeFi and wallet development in the U.S. 

“The disappointing proposal outlined by Senate Democrats would effectively ban decentralized finance, wallet development, and other applications in the United States – an outcome that’s neither workable nor consistent with American innovation,” said Blockchain Association CEO Summer Mersinger, adding, “The language as written is impossible to comply with and would drive responsible development overseas. We urge our policymakers to stay at the table, continue to engage each other across the aisle, and ensure this critical piece of legislation supports – rather than hinders – our nation’s leadership in financial technology.”

Armstrong, quoting Mersinger’s statement, emphasized that the U.S. risks losing its tradition of technological leadership if the legislation passes in its current form. Despite the setback, he expressed commitment to engaging with Congress to refine the bill and protect economic freedom. 

The controversy has stalled bipartisan crypto market structure talks, with critics like Uniswap founder Hayden Adams echoing concerns that the Democratic counterproposal could “kill DeFi” in the U.S. 

The timing coincides with heightened political tensions, as some speculate the move may be a strategic jab at the Trump administration amid its recent successes, including ending the Gaza war. 

As the crypto community rallies against the proposal, the outcome of these negotiations could shape the future of DeFi globally. At this time, industry titans are vowing to fight for a regulatory framework that fosters innovation rather than suppression. 

Also read: Bitcoin Cycle Poised to Extend Beyond 2026: Mike Alfred

Mobile Only Image

Leituras Relacionadas

US Seizes Nearly $1B in Iranian Crypto Amid Economic Pressure Campaign

The United States has seized nearly $1 billion worth of Iranian cryptocurrency, Treasury Secretary Scott Bessent announced. He noted some wallet owners may be unaware their funds were confiscated. The action is part of "Operation Economic Fury," a U.S. financial pressure campaign against Iran launched in March 2025, which has also involved freezing bank accounts and seizing properties with European partners. Bessent stated that prior to U.S. intervention, the Iranian regime was allegedly diverting hundreds of millions monthly to a small elite. He described Iran's economy as severely strained, with food rationing, internet outages, and many military personnel going unpaid. The $1 billion seizure figure marks a significant increase from previous totals reported in April.

TheNewsCryptoHá 15m

US Seizes Nearly $1B in Iranian Crypto Amid Economic Pressure Campaign

TheNewsCryptoHá 15m

For the First Time, the U.S. Government Lifts Ban on Crypto Perpetual Contracts: What Does It Mean for the Market?

On May 29, the U.S. Commodity Futures Trading Commission (CFTC) issued guidance permitting 7*24 trading and clearing for crypto asset derivatives, effectively opening the U.S. market to crypto perpetual contracts for the first time. This move allows U.S. citizens and certain platforms to trade these instruments around the clock. Key beneficiaries include Kalshi, which received approval to list a Bitcoin perpetual contract; Coinbase, now the first CFTC-regulated Futures Commission Merchant (FCM) for U.S. clients; and CME, which will transition its Bitcoin futures and options to 7*24 trading. The CFTC emphasized that this is a tailored approach for crypto assets, requiring platforms to maintain compliance and risk assessments, while noting traditional commodities like agriculture may not be suitable for such hours. Industry leaders like Michael Saylor and Brian Armstrong praised the decision for bringing a major segment of the global crypto market to U.S. users. However, consumer advocacy group Better Markets criticized the CFTC, alleging it overlooked investor risks and acted in the industry's interest rather than the public's. Following the guidance, Kraken announced plans to launch CFTC-regulated perpetual futures in the U.S., signaling a potential surge in derivatives trading activity.

marsbitHá 1h

For the First Time, the U.S. Government Lifts Ban on Crypto Perpetual Contracts: What Does It Mean for the Market?

marsbitHá 1h

US Government Lifts Ban on Crypto Perpetual Contracts for the First Time: What Does It Mean for the Market?

The U.S. Commodity Futures Trading Commission (CFTC) has issued guidance permitting 24/7 trading and clearing for crypto asset derivatives, effectively opening the U.S. market to crypto perpetual contracts for the first time. This move ends the previous ban and allows American individuals and institutions to trade these instruments around the clock. Direct beneficiaries include Kalshi, which received approval to list a Bitcoin perpetual contract; Coinbase, now the first CFTC-regulated futures commission merchant for U.S. clients to access global crypto derivatives; and CME, which will transition its Bitcoin futures and options to 24/7 trading. The CFTC emphasized this is a specific allowance for crypto assets, noting that traditional commodities like agriculture may not be suitable for non-stop trading. It also requires platforms to undergo case-by-case reviews for compliance and risk management. Industry leaders like Michael Saylor and Brian Armstrong praised the decision for integrating Bitcoin into capital markets and granting U.S. users access to a major global market segment. However, consumer advocacy group Better Markets criticized the CFTC for allegedly neglecting investor protection and favoring the industry it regulates. Other platforms like Kraken have announced plans to launch regulated perpetual futures for the U.S. market. The policy shift is expected to redirect significant liquidity and institutional participation to the newly accessible U.S. crypto derivatives landscape.

Odaily星球日报Há 1h

US Government Lifts Ban on Crypto Perpetual Contracts for the First Time: What Does It Mean for the Market?

Odaily星球日报Há 1h

How the CLARITY Act Reshapes the Stablecoin Yield Economy

The CLARITY Act, recently advanced by the U.S. Senate Banking Committee, fundamentally reshapes the stablecoin yield economy by closing loopholes left by the earlier GENIUS Act. Its Section 404 expands the ban on "hold-to-earn" rewards to all Digital Asset Service Providers (DASPs) and their affiliates, prohibiting any passive, interest-like yield. Crucially, it introduces a legal distinction, permitting "use-to-earn" rewards based on actual activities like spending, trading, or staking. In anticipation of this regulatory shift, major Wall Street asset managers—Morgan Stanley, BlackRock, and JPMorgan—have launched a series of tokenized money market funds (e.g., BlackRock's BRSRV, JPMorgan's JLTXX) designed explicitly for stablecoin reserve assets. These products represent a new, compliant yield layer: the stablecoin issuer earns interest from the underlying tokenized fund, which can then be passed to users through redesigned activity-based rewards. This marks a paradigm shift from a "hold-to-earn" to a "use-to-earn" market. While pathways remain for exchanges to redesign rewards (Path A) and for DeFi protocols to offer yield (Path B), the tokenized reserve asset layer (Path C) emerges as the most robust and strategically positioned infrastructure. However, this concentration—exemplified by BlackRock's BUIDL fund backing over 90% of USDtb's reserves—introduces new systemic risks. The final outcome hinges on regulatory decisions, particularly the OCC's proposed 20% cap on tokenized assets in reserves, which will determine the scalability of this new financial infrastructure layer.

marsbitHá 3h

How the CLARITY Act Reshapes the Stablecoin Yield Economy

marsbitHá 3h

Weekly Token Unlocks: HYPE Unlocks $650M Worth of Tokens

Summary: Token Unlocks for the Week – HYPE Unlocks $650 Million Worth of Tokens Major token unlocks are scheduled for this week, headlined by Hyperliquid's significant release and a smaller unlock from EigenLayer. **Hyperliquid (HYPE)** * **Platform:** A high-performance blockchain aiming to create a fully on-chain, open financial system. * **Unlock Details:** 9.92 million HYPE tokens, valued at approximately $650 million. * **Project Links:** Twitter: https://x.com/HyperliquidX; Website: https://hyperfoundation.org/ **EigenLayer (EIGEN)** * **Protocol:** A protocol built on Ethereum that introduces restaking, allowing staked ETH to secure other applications. * **Unlock Details:** 36.86 million EIGEN tokens, valued at approximately $8.22 million. * **Project Links:** Twitter: https://x.com/eigenlayer; Website: https://www.eigenlayer.xyz/ Both projects have provided specific token release schedules following these unlocks.

marsbitHá 6h

Weekly Token Unlocks: HYPE Unlocks $650M Worth of Tokens

marsbitHá 6h

Trading

Spot
Futuros
活动图片

Categorias popularesright-arrow

Etiquetas Popularesright-arrow