Coinbase CEO Opposes Senate’s Draft on Crypto Legislation

Coinbase CEO Brian Armstrong opposes the U.S. Senate’s CLARITY Act amid banking sector pressures over stablecoins, highlighting tensions on regulatory fronts since January 2026.

The conflict influences crypto markets and regulatory landscape, with potential impacts on stablecoin stability and banking sector dynamics.

Opposition to CLARITY Act

Coinbase CEO Brian Armstrong recently withdrew his support for the Senate’s CLARITY Act draft. The CEO expressed concerns over the bill’s stance on stablecoin rewards and tokenized securities.

“After reviewing the Senate Banking draft over the last 48 hours, Coinbase unfortunately can’t support this bill as written.” — Brian Armstrong, CEO of Coinbase

Armstrong criticized the draft, citing potential damages to DeFi and weakening of the CFTC. He emphasized the preference for “no bill rather than a bad bill.”

Response from Banks

The stance of U.S. banks, through their lobby group American Bankers Association, challenges stablecoins, warning of significant risks. This involves claims about potential threats to bank deposits.

The banks argue that the draft allows stablecoin yields to pose a threat to financial stability, calling for stricter regulations. This positions banks against the growing crypto market.

Impact on Coinbase’s Revenue

Financial shifts in stablecoin markets could result from this legislation, impacting Coinbase’s revenue model. Data from previous quarters highlights stablecoin revenue’s significance in Coinbase’s portfolio.

Concerns over this draft reflect broader socio-economic implications as banks and crypto exchanges vie for market influence. The ongoing debate emphasizes the need for clarity in crypto regulations.