TLDR:
- Coinbase CEO Brian Armstrong publicly reversed his stance to back the CLARITY Act after months of opposition.
- U.S. Treasury Secretary Scott Bessent urged Congress to move quickly on digital asset regulation rules.
- Coinbase CLO Paul Grewal anticipated meaningful CLARITY Act progress within 48 hours of his statement.
- Banks and crypto firms remain at odds over stablecoin rewards, stalling the bill since January 2025.
CLARITY Act crypto regulation is nearing a turning point. Coinbase CEO Brian Armstrong has reversed his months-long opposition to the bill and has publicly backed the legislation alongside U.S. Treasury Secretary Scott Bessent.
With Coinbase’s legal chief anticipating a deal within 48 hours, Washington’s push to establish a formal digital asset framework is gaining serious momentum.
Armstrong Reverses Stance Amid Washington’s Push for Crypto Rules
Coinbase Global CEO Brian Armstrong has publicly backed the CLARITY Act, reversing months of opposition to the legislation. His support came after U.S. Treasury Secretary Scott Bessent urged Congress to act quickly on digital asset regulation.
Bessent published a Wall Street Journal opinion piece calling for clearer rules governing crypto markets and stablecoins.
Armstrong responded directly on social media, writing: “Thank you, Scott Bessent, for saying it. It’s time to pass the Clarity Act.”
He also credited bipartisan Senate efforts over recent months for strengthening the bill. The public endorsement marked a clear departure from his earlier position.
Earlier this year, Armstrong withheld support as debates over stablecoin yield remained unresolved. He had stated that Coinbase would prefer no bill over a flawed one.
His latest stance now aligns with Washington’s broader momentum toward formalizing crypto oversight. COIN stock has declined 29% this year, trading at $169.02 per share amid ongoing regulatory uncertainty.
Banks and Crypto Firms Remain Divided Over Stablecoin Rewards
Coinbase Chief Legal Officer Paul Grewal indicated on April 1 that progress on the CLARITY Act was expected within 48 hours. Speaking to Fox Business, he said, “I’m very confident we’re going to see progress.
The reason for that is we need to finish the job.” He outlined a path through a Senate Banking Committee markup, a floor vote, and a presidential signature.
The Senate Banking Committee had delayed its markup session multiple times, stalling the bill since January. The central conflict involves whether third-party platforms can offer yield tied to stablecoin holdings.
Banking groups want the CLARITY Act to restrict that practice, while crypto firms argue it would revisit already-settled rules.
Last year’s GENIUS Act, now signed into law, barred stablecoin issuers from paying interest directly. That provision was a concession to banks concerned about deposit migration to higher-yielding digital assets.
President Trump has since warned banks not to obstruct his administration’s crypto agenda, stating that inaction risks ceding ground to countries like China advancing digital asset frameworks faster.
The U.S. Treasury also proposed the first rule under the GENIUS Act, allowing stablecoin issuers with under $10 billion in outstanding issuance to operate under state-level rules, subject to strict conditions.
