Coinbase CEO Brian Armstrong has blasted Senate Democrats’ proposal to regulate DeFi front ends as brokers, calling it a “bad proposal” that threatens cryptocurrency innovation in the United States.
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- Coinbase CEO Brian Armstrong criticized Senate Democrats’ proposal to regulate DeFi front ends as brokers, saying it would hinder crypto innovation in the United States.
- Other crypto proponents expressed similar concerns, warning that the plan could effectively ban DeFi development in the US.
“We will never accept this,” Armstrong declared in a post on X, warning that the proposal would stifle innovation and prevent the United States from becoming the crypto capital of the world. However, he acknowledged that “legislation is a process” and said Coinbase is committed to working with lawmakers to “get it right.”
I will never accept this
This is a bad proposal, plain and simple, and could set back innovation and prevent the United States from becoming the crypto capital of the world.
But legislation is a process, and we are committed to engaging with Congress and helping them get it right. From now on… https://t.co/SmHsBgFRoE
— Brian Armstrong (@brian_armstrong) October 10, 2025
By way of background, a proposed framework reportedly being circulated among Senate Democrats outlines how regulators could oversee decentralized finance as part of broader crypto market structure legislation.
As reported by Politico, the document suggests that companies and individuals that profit from the front end of DeFi platforms, such as wallet interfaces and user-facing apps, should be required to register with the Securities and Exchange Commission or the Commodity Futures Trading Commission and operate as licensed brokers.
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Armstrong is not alone in his criticism. Summer Marsinger, CEO of the Blockchain Association and former CFTC commissioner, said the proposal would “effectively ban decentralized finance, wallet development, and other applications in the United States.”
“The language as written is impossible to comply with and will promote responsible development overseas,” Mersinger said in a statement. He urged policymakers to continue bipartisan consultation and avoid stifling technological progress.
Jake Cherbinski, chief legal officer at venture firm Valeant, echoed the sentiment on X, saying regulators are effectively proposing a ban on cryptocurrencies.
1/ Senate Democrats are trying to destroy the market structure.
A group just sent a counterproposal to the RFIA, and it’s very unserious. These senators claim to be pro-cryptocurrency, but what they are essentially proposing is a ban on cryptocurrencies.
It’s hard to imagine good deals happening at the moment 🧵 https://t.co/yL5bDbdCvq
— Jake Chervinsky (@jchervinsky) October 9, 2025
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