CLARITY Act Faces Collapse as Coinbase CEO Brian Armstrong Rejects Senate Draft — Crypto’s Biggest US Bill on the Brink
Coinbase CEO Brian Armstrong has withdrawn support for the Senate's current version of the CLARITY Act, calling it "worse than no legislation at all." The bill, intended to provide regulatory clarity for digital assets, now faces significant opposition due to provisions that would nearly ban tokenized stocks, expand surveillance of DeFi users, and restrict stablecoin rewards. Armstrong argues the draft undermines innovation, weakens competition, and threatens core principles of decentralized finance.
The backlash has already stalled legislative momentum, prompting the Senate Banking Committee to cancel its scheduled markup vote. Committee Chair Tim Scott cited unresolved issues, including disagreements over stablecoin yield, DeFi privacy, and ethics provisions. While some industry leaders, including Ripple's CEO, viewed the bill as a step forward, others aligned with Coinbase's concerns, fearing increased surveillance and favoritism toward traditional banks.
With bipartisan support uncertain and key lawmakers raising objections, the CLARITY Act’s future is now in doubt, risking its collapse amid divided industry and political interests.
ccn.com01/15 09:01
