CLARITY Act: Navigating the Future of the Crypto Market
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Coinbase’s Vision for a Favorable Crypto Legislation
The much-anticipated CLARITY Act, a pivotal piece of legislation for the cryptocurrency market, remains under deliberation in the US Senate. Despite the delay, Coinbase CEO Brian Armstrong remains hopeful about a successful outcome. Speaking at the World Liberty Forum in Mar-a-Lago, Armstrong emphasized that lawmakers are on track to deliver a constructive solution benefiting the crypto industry, the banking sector, and American consumers.
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Armstrong asserted that the legislation presents a significant opportunity to ensure regulatory clarity and enhance the United States’ standing in the global digital asset arena. The bill, having passed the House of Representatives in July 2025 with a strong bipartisan majority of 294–134, now awaits a floor vote in the Senate after being referred to the Senate Committee on Banking, Housing, and Urban Affairs in September 2025.
Challenges and Deliberations in the Senate
Initially planned committee markups for mid-January 2026 were either canceled or postponed due to internal conflicts and industry resistance. Meanwhile, the Senate Agriculture Committee advanced a related bill featuring elements of the Digital Commodity Intermediaries Act (S. 3755) in late January and early February, though this has not resolved the broader impasse regarding market structure reform.
Stablecoin Rewards: A Point of Contention
One of the major sticking points in the legislation remains the issue of stablecoin rewards. Senator Bernie Moreno has voiced opposition to allowing issuers to offer interest or rewards to stablecoin holders, arguing that such incentives should not be part of the regulatory framework. During a CNBC interview, Moreno suggested that unless one owns a bank, there should be little concern, as increased competition for deposits would ultimately benefit consumers.
However, Senator Moreno expressed optimism that the crypto legislation will overcome the current stalemate, aiming for passage by April. In contrast, Coinbase CEO Brian Armstrong advocates for the inclusion of stablecoin rewards, underscoring their role in fostering a competitive domestic market. He noted that several financial institutions are already embracing crypto technologies and forming partnerships with Coinbase, highlighting the sector’s potential for innovation.
The Path Forward for American Innovation
Armstrong emphasized the importance of the banking industry’s embrace of technological advancements, remarking that the United States has historically thrived by adapting to change rather than protecting established entities. “America has always been forward-looking, ensuring its competitiveness on the global stage,” Armstrong stated.
Recent reports indicate that the White House is considering a high-level meeting to address the stablecoin yield issue, reflecting ongoing efforts to resolve the legislative deadlock. The total crypto market capitalization currently stands at $2.3 trillion, according to TradingView.com data.
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