Coinbase Blocks Legislation, Sparking Internal Rift in Washington Crypto Scene

Coinbase (COIN-US) CEO Brian Armstrong's opposition to a key Senate cryptocurrency bill has triggered a rare public backlash from the White House, highlighting deep divisions within the U.S. crypto industry over legislative strategy. Following Armstrong's intervention, White House crypto advisor Patrick Witt criticized his stance that "no bill is better than a bad bill," warning that political dynamics could shift unfavorably for the sector. The delay of the bill, now expected to be postponed by weeks, has prompted industry introspection on whether aggressive resistance during a relatively favorable political climate may have backfired.分歧 is emerging between those advocating for maximum concessions and others pushing for pragmatic compromises to secure regulatory clarity. With midterm elections looming, concerns are mounting that a shift in congressional power could lead to stricter crypto regulations. Analysts at Bloomberg Intelligence have lowered their forecast for the bill's passage this year from 70% to 60%, cautioning further delays could diminish its chances significantly. Armstrong later softened his position, acknowledging excessive concessions to traditional finance in the draft but maintaining belief in its potential passage. While Coinbase declined comment, Armstrong's actions underscore the crypto industry's influence in Washington under Trump, who has long supported digital assets and amassed wealth in the sector.