Stablecoins hold as Coinbase backs CLARITY April push

Why Coinbase’s CEO says the CLARITY Act matters now

Coinbase CEO Brian Armstrong has signaled optimism that a U.S. crypto market structure bill, the Digital Asset Market Structure CLARITY Act, can advance, as reported by FXStreet. He and Senator Bernie Moreno have framed a path that could address persistent gaps in federal oversight affecting exchanges and digital assets.

Talks have nonetheless stalled at points, according to TheStreet, creating an impasse in Washington’s crypto debate. That timing makes the CLARITY Act consequential because it is positioned to define how core activities, trading, custody, and stablecoin programs, fit within federal rules.

Immediate impacts: stablecoin yields, banks, and SEC vs CFTC oversight

On stablecoin yields, Armstrong has argued that updated legislation could give banks reasons to participate by permitting bank-offered stablecoin reward programs within defined guardrails, as reported by CoinDesk. The dispute centers on bank rewards, not staking, and turns on consumer protection, prudential supervision, and operational risk management.

Negotiations have also focused on how deposit-taking institutions would handle tokenized dollars under existing banking rules. Depending on final language, clarified risk treatment and permissible rewards could broaden bank participation in stablecoin distribution.

The CLARITY Act is also framed as clarifying jurisdictional lines between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Clearer split-oversight could reduce reliance on enforcement-by-litigation, though the bill’s final text will determine scope and practical effects.

Some industry leaders favor advancing an imperfect framework and refining it over time. “If it’s not perfect, who cares? We’ll fix it in time,” said Michael Novogratz, CEO of Galaxy Digital, as cited by Coin360.

Timeline, odds, and stakeholder positions

Current status, negotiations, and near-term milestones

Momentum has fluctuated, with an April target for action referenced amid a renewed push to revive the stalled crypto market structure bill, according to AMBCrypto. Banking pushback remains a central hurdle as negotiators weigh how to align rewards, custody, and prudential standards.

Coinbase’s stance has evolved alongside the text, including a high‑profile decision to pull support just before a Senate markup, as reported by Forbes. That sequence underscores the bill’s moving parts and the premium on exact language around stablecoin programs and market oversight.

Where Coinbase, banks, and policymakers agree or differ

Coinbase has highlighted stablecoin rewards and bank participation as pivotal, while other industry voices emphasize passing a workable baseline and improving it later. Policy advisers have warned that delaying could reduce momentum; Patrick Witt, a White House crypto adviser, pushed back on a “no bill is better than a bad one” posture and urged continued progress, according to Bloomberg.

Areas of alignment include the need for clear SEC–CFTC boundaries and safer paths for compliant innovation. The most sensitive divergences center on how bank rewards are permitted, how tokenized assets are supervised, and how much flexibility regulators retain once the framework is in place.

At the time of this writing, Coinbase Global (COIN) closed at 165.94, up 1.15% on the day, based on data from Yahoo Finance. This market context does not imply any view on future performance or legislative outcomes.