Overview

• Coinbase CEO Brian Armstrong called the proposal a bad idea for U.S. innovation and said the company will engage Congress to seek changes.
• Draft details reported by media include KYC for non-custodial wallets, treating developers as financial intermediaries, and a Treasury run restricted list of protocols.
• Senate Banking Committee Republicans paused further meetings until a markup is scheduled, labeling the document an unserious effort.
• Public recriminations followed the leak, with a spokesperson for Sen. Ruben Gallego accusing Republicans of leaking and Sen. Tim Scott’s office criticizing Democrats’ approach.
• The standoff contrasts with House progress after passage of the CLARITY Act in July, underscoring divergent regulatory paths for crypto.