WASHINGTON D.C  (VINnews)— Coinbase CEO Brian Armstrong voiced strong opposition Thursday to a major cryptocurrency regulation bill during a CNBC interview on Capitol Hill, hours after the Senate Banking Committee postponed a planned markup session amid industry pushback.

The legislation, unveiled Monday by the Senate Banking Committee and known as the Digital Asset Market Clarity Act, aims to classify crypto tokens as securities, commodities or other categories while clarifying oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Armstrong, speaking from the Russell Senate Office Building, criticized the bill’s provisions, particularly those affecting stablecoin rewards, tokenized equities and decentralized finance (DeFi). He argued the measure would erode the CFTC’s authority and harm innovation.

“We can’t really have banks come in and try to kill their competition at the expense of the American consumer,” Armstrong told CNBC.

The committee had scheduled a Thursday markup to debate amendments and advance the bill, but Chairman Tim Scott, R-S.C., canceled the session late Wednesday following Armstrong’s announcement on X that Coinbase could not support the draft as written.

Armstrong described the proposal as “materially worse than the current status quo” and said the company would prefer no bill over a flawed one. Key concerns include draft language that could restrict or eliminate rewards on stablecoins — dollar-pegged tokens — which crypto firms like Coinbase offer to users, drawing opposition from the banking sector over potential risks to deposits and financial stability.

The postponement leaves the bill’s future uncertain as bipartisan negotiations continue. Scott said in a statement that discussions remain ongoing in good faith with industry leaders, the financial sector and colleagues on both sides of the aisle.

Coinbase has been a major player in Washington, spending millions through political action committees to support pro-crypto candidates in recent election cycles. The company’s stance highlights internal rifts within the crypto industry over the shape of regulation, even as some advocacy groups continue backing the effort.

The bill builds on last year’s Genius Act, which established a federal framework for stablecoins, but market structure issues have proven more contentious. No new markup date has been set.