Coinbase (COIN) is trading lower as the company withdraws its support for the U.S. Senate’s cryptocurrency market-structure bill, prompting a stock decline. As of 2:00 p.m. on Jan. 15 (ET), Coinbase was down 3.76% ($9.62) to $246.24. On X, Coinbase CEO Brian Armstrong said the revised bill unveiled by the Banking Committee has “too many problems” and that Coinbase “cannot support” it in its current form. The company has formally withdrawn its support for the market-structure bill, citing concerns including a de facto ban on tokenized stocks and provisions that would effectively remove incentives for stablecoins.
Investors responded to the withdrawal with a notable drop in Coinbase shares. The move highlights how regulatory changes can impact sentiment around tokenized stocks and stablecoins.
Armstrong noted concerns such as a de facto ban on tokenized stocks and provisions that would effectively remove incentives for stablecoins. The withdrawal marks a shift from early support for the bill and underscores ongoing regulatory uncertainty in the crypto sector.
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