Coinbase and traditional finance firms clash over Senate Banking Committee language addressing tokenized securities, threatening comprehensive crypto legislation as Brian Armstrong calls contested provisions a "de facto ban.”
A deepening dispute over tokenized stocks threatens to derail Washington’s push for comprehensive crypto regulation as industry executives split over language in the Senate Banking Committee’s portion of the landmark digital assets bill.
Coinbase CEO Brian Armstrong called the contested section a “de facto ban” on tokenized equities earlier this month, while traditional finance stalwarts, including Ken Griffin’s Citadel Securities, argue firms should follow identical rules whether dealing in blockchain-based or conventional securities.
The fracture emerged after Senate Banking Chair Tim Scott released bill text containing provisions that affirm the Securities and Exchange Commission’s authority over financial assets resembling stocks and bonds, regardless of whether they exist on blockchain networks.
According to Politico, committee Democrats requested the language’s inclusion, catching many crypto executives by surprise and exposing fundamental disagreements over how quickly markets should transition “on-chain.”
