Crypto Giants Push Back as Industry Unites Against Tough New US Crypto Bill

Crypto Industry Pushes Back as Opposition to Market Structure Bill Grows Beyond Coinbase

Opposition to the proposed U.S. crypto market structure bill is widening, with multiple digital asset firms raising serious concerns alongside Coinbase. Industry sources say resistance is not limited to a single company but reflects deeper unease across the crypto sector about how the legislation could reshape decentralized finance, stablecoins, and regulatory authority.

The growing pushback, highlighted by the X account Coin Bureau and cited by Nyohoka Crypto, underscores mounting tension between lawmakers seeking tighter oversight and crypto firms warning that overly restrictive rules could stifle innovation.

Source: Xpost

Coinbase Was the First, But Not the Only Voice

Coinbase drew headlines after publicly withdrawing support for the bill, arguing that certain provisions risked doing more harm than good. However, industry insiders say Coinbase’s position mirrors concerns quietly shared by many other crypto firms.

Executives from exchanges, DeFi developers, and infrastructure providers have reportedly flagged similar issues in private discussions with lawmakers. Their objections center on how broadly the bill defines regulatory authority and how deeply it reaches into decentralized systems.

This broader opposition suggests the bill faces structural challenges beyond political optics.

DeFi Rules Raise Alarm Across the Industry

One of the most contentious areas of the bill involves decentralized finance. Critics argue that proposed DeFi provisions blur the line between centralized intermediaries and permissionless protocols.

DeFi developers warn that applying traditional compliance standards to decentralized systems could be unworkable. Many protocols operate without central operators, making enforcement unclear or impossible.

Industry sources say firms fear the bill could unintentionally criminalize developers or push innovation offshore, weakening U.S. leadership in blockchain technology.

Expanded SEC Authority Sparks Pushback

Another flashpoint is the expansion of authority for the Securities and Exchange Commission. Under the proposed framework, the SEC would gain broader discretion over digital assets classified as securities.

Crypto firms argue that this expansion risks regulatory overreach. They fear increased enforcement without clear guidance, creating uncertainty for projects trying to comply.

Several companies reportedly warned lawmakers that ambiguity around SEC jurisdiction could discourage investment and slow product development.

Stablecoin Yield Limits Draw Industry Criticism

Stablecoin-related provisions have also drawn criticism. Sources say the bill includes language that could restrict or cap yields associated with stablecoins.

Crypto firms argue that such limits could undermine legitimate financial products and reduce competition. Stablecoins play a central role in crypto markets, enabling payments, liquidity, and cross-border transactions.

Industry leaders warn that restricting yields may push users toward less transparent alternatives or foreign platforms beyond U.S. oversight.

Proposed Amendments Add to Industry Concerns

According to sources familiar with the negotiations, proposed amendments discussed behind closed doors could have tightened crypto rules even further.

These amendments reportedly aimed to expand compliance obligations, increase reporting requirements, and narrow exemptions for decentralized systems.

Rather than reassuring the industry, the prospect of tougher amendments amplified concerns that the bill was moving in a more restrictive direction.

Why Crypto Firms Are Taking a Stand

Crypto executives say their opposition is not about avoiding regulation altogether. Many firms support clear rules and investor protections.

The core issue, they argue, is balance. Industry leaders believe poorly designed regulations could lock in outdated frameworks that fail to account for how blockchain technology actually works.

By speaking out, companies hope to influence revisions before the bill becomes law.

Lawmakers Face a Delicate Balancing Act

For lawmakers, the pushback highlights the challenge of regulating a fast-evolving sector. Public pressure to address consumer protection and financial stability remains strong.

At the same time, there is growing recognition that overly aggressive regulation could drive innovation overseas. Other jurisdictions continue to compete for crypto talent and capital.

The fate of the bill may depend on whether lawmakers can reconcile these competing priorities.

Market Reaction Remains Cautious

So far, markets have responded cautiously rather than dramatically. Crypto prices have shown limited reaction, suggesting traders are waiting for clarity.

However, analysts note that regulatory uncertainty often affects sentiment gradually. Prolonged ambiguity can weigh on investment decisions even without immediate price moves.

Stocks tied to crypto infrastructure remain sensitive to developments in Washington.

What This Means for the Future of U.S. Crypto Policy

The widening opposition signals that crypto regulation in the U.S. remains far from settled. Industry resistance increases the likelihood of delays, revisions, or even a complete rethink of the bill.

Some analysts believe this could ultimately benefit the sector by allowing more time for thoughtful rulemaking. Others worry that prolonged gridlock will leave firms stuck navigating unclear rules.

Either outcome highlights the growing influence of crypto firms in policy discussions.

Why This Debate Matters Globally

U.S. crypto regulation often sets the tone globally. Other countries watch closely and sometimes align their frameworks accordingly.

If the U.S. adopts overly restrictive rules, it could reshape global capital flows and innovation hubs. Conversely, a balanced approach could reinforce U.S. leadership in financial technology.

That global impact is one reason the industry is pushing so hard to shape the bill’s final form.

A Turning Point for Industry Advocacy

The coordinated opposition to the market structure bill marks a shift in how crypto firms engage with policymakers. Rather than reacting after rules are finalized, companies are now actively lobbying during the drafting process.

This approach reflects crypto’s maturation into a politically relevant industry with significant economic stakes.

Nyohoka Crypto notes that such engagement may become the norm as digital assets further integrate into mainstream finance.

Conclusion

Coinbase’s opposition to the crypto market structure bill was not an isolated stance. Multiple crypto firms have raised concerns about DeFi rules, expanded SEC authority, and limits on stablecoin yields. Confirmed by Coin Bureau and cited by Nyohoka Crypto, the growing pushback suggests the legislation faces serious challenges.

As lawmakers weigh amendments and industry feedback, the debate underscores a broader question: how to regulate crypto without undermining the innovation that made it valuable in the first place. The answer could shape the future of digital assets in the United States for years to come.

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