Brian Armstrong said reports of the White House dropping support for the CLARITY Act are inaccurate and talks remain active. Coinbase publicly withdrew its support for the CLARITY Act, citing concerns with the latest Senate draft. Negotiations with banks and policymakers are ongoing as lawmakers work toward revised language in early 2026. In a post shared on X on Sunday, Jan. 18, Armstrong said a report suggesting the White House had withdrawn its support was inaccurate.
He explained that the administration had asked Coinbase to explore whether a compromise could be reached with banks, particularly regional lenders, and said those conversations are now underway. Armstrong added that the bill’s impact on smaller banks is a central issue being discussed. The CLARITY Act is designed to define regulatory boundaries for digital assets in the United States, covering exchanges, DeFi platforms, stablecoins, and tokenized assets. Armstrong said the proposed language could limit DeFi activity, restrict tokenized equity products, and block stablecoin issuers from offering yield-like rewards to users.
The withdrawal had immediate consequences. A scheduled markup session in the Senate Banking Committee was postponed to allow more time for negotiations, slowing the bill’s progress after it passed the House in 2025. Despite reports of strain, Armstrong said there is no breakdown in relations. He described recent talks with the White House as “super constructive” and said the administration is focused on finding a path that balances crypto innovation with the concerns of traditional financial institutions. Stablecoin yields have emerged as a key sticking point, with banks arguing that crypto-issued returns could draw deposits away from the banking system. For now, negotiations continue, with revised language expected to be discussed in the coming weeks as lawmakers look for a deal that can move forward in the Senate.
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