Coinbase CEO Brian Armstrong Defends CLARITY Act Amid Crypto Regulation Debate
Coinbase CEO Brian Armstrong shot down reports suggesting that there was some bad blood between the White House & Coinbase...
Quick overview
- Coinbase CEO Brian Armstrong dismissed claims of tension between Coinbase and the White House regarding the CLARITY Act, stating that discussions are ongoing.
- Armstrong highlighted concerns over certain provisions of the bill that could hinder DeFi development and restrict tokenized stock trading.
- Coinbase has formally communicated its issues with the bill to lawmakers, resulting in the Senate Banking Committee postponing it for further negotiation.
- The debate around the CLARITY Act reflects deeper divisions within the crypto industry about the balance between regulation and innovation.
Coinbase CEO Brian Armstrong shot down reports suggesting that there was some bad blood between the White House & Coinbase that could cause problems for the CLARITY Act – a key piece of legislation trying to get a handle on US crypto market rules. Speaking on X, Armstrong said things are “very much still on the go” between the two despite some differences over the bill.
He pointed out that officials at the White House have been encouraging Coinbase to have some conversations with traditional banks – which is still happening. This comes after a journalist called out Coinbase for having tensions with the Trump administration; in particular, that they were getting frustrated with Coinbase pulling out of the bill.
Coinbase dropped support for the bill because they were worried about some of the provisions potentially undermining DeFi , restricting tokenized stock trading and stopping companies from sharing the returns on stablecoin investments with users. Armstrong said that some of these provisions could be really bad for consumers and innovation , would much rather see the bill put off for a bit and revised than going through as is.
In general, love your posts, but this is not accurate. The White House has been super constructive here.
They did ask us to see if we can go figure out a deal with the banks, which we're currently working on.
Actually, we've been cooking up some good ideas on how we can help… https://t.co/t1bK48oRc0
— Brian Armstrong (@brian_armstrong) January 17, 2026
Key beefs Coinbase has with CLARITY Act
As a result of sharing their beefs with lawmakers, Coinbase got a formal list that the Senate Banking Committee decided to put on the backburner , giving time for more negotiation , and Armstrong is expecting a revised version in the coming weeks.
Some of the main things Coinbase is having trouble with are:
- Limiting how DeFi protocols get developed
- Restricting sharing of returns on stablecoin investments
- Putting up barriers for trading tokenized equity
This whole kerfuffle has also brought up some deeper divisions within the crypto industry. Some execs think the bill is the way to get clarity on things , while others think that letting traditional banks have too much of a say will just stifle competition & innovation. The bit about sharing stablecoin returns is probably the most contentious point , with some saying banning this would reduce consumer choice for sure.
Crypto regulation starts getting into the politics
The CLARITY Act debate also shows how things are getting really political for crypto regulation – and it goes far beyond just making new rules. The Fed’s Jerome Powell recently said that some testimony he gave might get the Justice dept looking into his role , which could put the central bank’s independence at risk.
Meanwhile Galaxy Digital has said that certain bits of the draft bill could let the Treasury basically spy on anyone – and that could be just as bad as the Patriot Act. Critics say that these kinds of measures could cause innovation to flee the good ol US and slow down crypto growth – leaving lawmakers in a bit of a bind: how to keep an eye on things without stifling industry growth.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save