CEX states they do not support the Senate's crypto bill, which may affect the legislative process

On January 15, 2024, CEX CEO Brian Armstrong stated that before the Senate Banking Committee revises and votes on a comprehensive cryptocurrency legislation, CEX will not support the current version of the bill. Armstrong posted on X platform that while he appreciates the bipartisan consensus driven by senators, the draft is “worse than the current regulatory state,” and “it’s better to have no bill than a bad one.” The bill aims to clearly define the boundaries of the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in digital asset regulation, specify when digital assets are considered securities or commodities, and introduce new disclosure requirements. The Senate Banking Committee plans to hold a hearing and vote on the bill on Thursday morning. Armstrong pointed out that the bill has significant issues regarding DeFi, stablecoin yields, and other areas, with some provisions potentially granting the government “unlimited access to personal financial records,” eroding user privacy, and the revisions possibly “killing stablecoin reward mechanisms.” He also criticized the bill for weakening the CFTC’s authority, making it subordinate to the SEC in regulation, which is unfavorable for industry innovation. Sources familiar with the matter said that CEX’s public opposition is “symbolic” and could influence the bill’s final outcome. The issue of stablecoin yields has become a focal point of controversy, with banking groups worried that the mechanisms could drain deposits and impact community banks, while the crypto industry accuses banks of trying to limit competition. Nevertheless, some industry organizations still support legislative progress. Digital Chamber of Commerce CEO Cody Carbone stated that they will continue to push for the bill to become law in 2026; Ripple CEO Brad Garlinghouse also expressed optimism about resolving disagreements through amendments.