Coinbase has withdrawn its support for a major U.S. crypto bill, leading to the cancellation of a Senate Banking Committee hearing just hours before it was scheduled. The bill aimed to define regulatory oversight by the SEC and CFTC but faced criticism for potentially stifling innovation and imposing stringent requirements on decentralized finance (DeFi) and stablecoin yields. Coinbase's withdrawal highlighted industry concerns over the bill's provisions, which some argue could hinder the launch of new tokens and decentralized projects.
The bill's sudden release and tight amendment deadlines left little time for industry review, exacerbating tensions. While some crypto companies supported the bill, others, like Coinbase, raised alarms over its impact on DeFi and tokenized securities. The bill proposed expanding the Bank Secrecy Act to DeFi, potentially centralizing operations and imposing anti-money laundering regulations. Lawmakers have resumed discussions, but the bill's future remains uncertain as negotiations continue.
Coinbase Withdraws Support, U.S. Crypto Bill Hearing Cancelled
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