Just one day before a key Senate vote, Coinbase CEO Brian Armstrong made a bold move by backing out of the US Clarity Bill.
Author: Sahil Thakur
15th January 2026 – Just one day before a key Senate vote, Coinbase CEO Brian Armstrong made a bold move by backing out of the US Clarity Bill. Armstrong announced that Coinbase would no longer support the U.S. Senate’s latest crypto market structure bill, the Digital Asset Market Clarity Act. He explained that the bill, in its current form, would harm rather than help the crypto industry.
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Aaron Day
@AaronRDay
Every crypto bro cheering this bill is either on Coinbase’s payroll or can’t read. I read all 278 pages. You’re getting played. I’ve been in crypto since 2012. That’s 14 years of watching governments pretend to be confused while quietly building the cage. Trump promised to make
12:37 PM·Jan 13, 2026
“We’d rather have no bill than a bad bill,” Armstrong wrote on X.
The bill, nearly 300 pages long, attempts to establish how digital assets should be regulated. It divides oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, Armstrong believes the legislation leans far too heavily in the SEC’s favor.
According to Armstrong, the bill effectively:
These restrictions, he argues, represent a step backward for American crypto innovation. Moreover, Coinbase generates substantial revenue from stablecoin products like USDC yields, making the proposed yield ban a direct threat to their business model.
Armstrong’s statement dropped just hours before the Senate Banking Committee was scheduled to begin its review of the bill and a flurry of amendments. This last-minute opposition is being viewed by analysts as a strategic move to pressure lawmakers into revising the legislation.
Coinbase, one of the biggest players in the U.S. crypto space, has previously lobbied for clear regulation. But this version of the bill, Armstrong said, would leave the industry worse off than the current regulatory uncertainty.
“Crypto needs to be treated on a level playing field with the rest of financial services so we can build this industry in a safe and trusted way in America,” he added.
Key milestones in Coinbase’s involvement with U.S. crypto market structure and the Clarity Bill
Coinbase intensifies calls for clear U.S. crypto rules, arguing existing regulation-by-enforcement is harming innovation.
Coinbase expands lobbying and policy outreach, positioning itself as a supporter of a comprehensive crypto market structure bill.
The company signals support for draft proposals aimed at defining digital assets and clarifying SEC–CFTC oversight.
Coinbase raises objections to sections affecting stablecoins, yield products, and limits on exchange business models.
Company leadership urges lawmakers to revise the bill, arguing that poorly designed rules could slow U.S. crypto adoption.
Coinbase publicly states it cannot support the Clarity Bill in its current form, preferring no bill over a harmful one.
Lawmakers and industry participants may revisit the bill, with Coinbase seeking changes before re-engaging.
Armstrong’s stance sparked immediate reaction. Some praised Coinbase’s decision, calling it a necessary stand against government overreach. Others, however, came to the bill’s defense.
On the other hand, Galaxy Digital’s head of research described the bill as the largest expansion of financial surveillance powers since the Patriot Act.
Coinbase’s withdrawal highlights a deepening rift between regulators and industry leaders. While the bill may still proceed, the lack of unified support from key players like Coinbase could delay or derail it altogether.
Crypto regulation in the U.S. continues to sit at a crossroads. The Clarity Act might still evolve, but for now, it faces growing resistance from those it claims to serve.
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