Coinbase CEO Brian Armstrong mentioned the trade can’t assist the Senate Banking Committee’s newest draft of the CLARITY Act, warning that the invoice, as written, would go away the U.S. crypto business worse off than the present regulatory established order.
In a put up on X, Armstrong cited a number of issues, together with what he described as a de facto ban on tokenized equities, new restrictions on decentralized finance that would grant the federal government broad entry to customers’ monetary information, and provisions that weaken the Commodity Futures Buying and selling Fee whereas increasing the Securities and Trade Fee’s authority.
“After reviewing the Senate Banking draft textual content during the last 48hrs, Coinbase sadly can’t assist the invoice as written,” Armstrong posted.
He additionally criticized draft amendments that might eradicate rewards on stablecoins, arguing they’d enable banks to suppress rising rivals.
“We’d quite haven’t any invoice than a foul invoice,” Armstrong mentioned on X, including that Coinbase would proceed pushing for a framework that treats crypto on a stage taking part in area with conventional monetary companies.
The feedback come a day earlier than the Senate Banking Committee is anticipated to mark up the CLARITY Act on Thursday, January 15.
The laws is attempting to make clear U.S. digital asset market construction by defining classes equivalent to digital commodities, funding contracts, and cost stablecoins, whereas dividing oversight between the SEC and CFTC.
Coinbase’ points with stablecoin rewards
Stablecoin rewards have emerged as a flashpoint in negotiations. Coinbase had reportedly warned lawmakers it could withdraw assist for the invoice if it restricts yield applications tied to stablecoins like USD Coin.
Coinbase shares in curiosity earnings generated from USDC reserves and makes use of a part of that income to supply incentives to customers, together with rewards of roughly 3.5% for Coinbase One prospects.
Stablecoin-related income could have reached $1.3 billion in 2025, making the difficulty central to Coinbase’s enterprise mannequin.
Banking teams argue that yield-bearing stablecoins may draw deposits away from conventional banks, whereas crypto companies counter that banning rewards would stifle innovation and push customers towards offshore platforms.
“I’m truly fairly optimistic that we’ll get to the best consequence with continued effort,” Armstrong later posted on X. “We are going to hold displaying up and dealing with everybody to get there.”
Michael Saylor, govt chairman of Technique, retweeted Armstrong’s put up, displaying his personal assist with the choice.
