Jan 17, 2026
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Coinbase Withdraws Support for Crypto Bill Over Concerns of Banking Influence
Coinbase Withdraws Support for CLARITY Act
- Coinbase retracted support for the CLARITY Act, signaling concerns about its alignment with crypto firms compared to traditional banks.
- CEO Brian Armstrong criticized the potential regulatory capture by banks, which could stifle competition within the crypto industry.
- Armstrong emphasized the need for a level playing field and expressed his duty to advocate for customers potentially impacted by the legislation.
Debate on CLARITY Act Provisions
- The act has sparked debate over stablecoin reward entitlements and potential bans on tokenized equities and DeFi restrictions.
- There are concerns about shifting regulatory authority from CFTC to SEC, affecting competition in the crypto sector.
Banking Lobbying Tactics in Question
- Armstrong pointed out that while banks benefit from cryptocurrency, their lobbying efforts aim to restrict competition.
- Despite criticisms, Armstrong expressed hope for resolving issues in the crypto market structure bill through legislative dialogue.
