Coinbase Withdraws Support from Senate Crypto Bill Citing 'Fatal Flaws' in Legislation

Coinbase, a leading cryptocurrency exchange, has abruptly withdrawn its support from a pivotal Senate crypto bill. The company's Vice President of Global Policy, Kara Calvert, stated that the proposed legislation contains "fatal flaws" that compelled this sudden reversal. The bill, known as the "Responsible Financial Innovation Act," initially garnered backing from some industry players. However, Coinbase now argues that the current draft fails to provide clear regulatory guidelines and could stifle innovation within the U.S. digital asset sector. This move highlights the ongoing tension between the crypto industry and lawmakers seeking to establish a regulatory framework. The withdrawal of support from a major player like Coinbase is a significant setback for the bill's proponents and underscores the critical debate over how to effectively regulate cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) without hindering growth.