Coinbase CEO Brian Armstrong has raised significant objections leading to his withdrawal of support for the contents of the Digital Asset Market Transparency Act (CLARITY Act). This is an important piece of legislation aimed at regulating the digital asset market in the United States.
Armstrong said the current bill contains provisions that are harmful to both consumers and competition. Speaking to CNBC on January 15, 2026, he said: We cannot allow banks to come in and try to eliminate competition. At the expense of American consumers.
Mr. Armstrong deepened his concerns in an interview with Fox Business the same day, accusing traditional banks of seeking unfair regulatory advantages. “It seemed very unfair to me that an industry would go in and be taken over by regulators to prohibit competition,” he asserted. “They have to compete on a level playing field and I truly believe in that.”
Executives at Coinbase, the largest U.S. cryptocurrency exchange, also highlighted the potential of stablecoins as an opportunity for consumers.
Regarding stablecoins, he emphasized: Earn significantly higher returns than traditional savings accounts. While interest rates on U.S. bank accounts average 0.14%, stablecoins can yield returns closer to 3.8%.
As previously reported by CriptoNoticias, the controversy arose when more than 100 U.S. community bank leaders sent a letter to the Senate on January 5, 2026, warning of an alleged “loophole” in the GENIUS Act, which was approved in 2025.
The regulation explicitly prohibits stablecoin issuers from paying interest directly to holders and is aimed at preventing these digital currencies from competing with traditional bank deposits and protecting local loan funding.
The conflict intensified as a new draft market structure bill based on the CLARITY Act became popular. This text contains provisions that limit or eliminate stablecoin rewards.
These measures prompted a strong reaction from Coinbase, leading to the withdrawal of support on January 14, 2026, and the price increase (review and amendment) scheduled for the next day at the Senate Banking Committee was immediately postponed.
Now, Senate Democrats are calling for urgent dialogue with major players in the crypto industry. With a scheduled call on January 16, 2026. Aims to restart negotiations and find a way forward.
Sources close to the situation say Democratic members of the Banking and Agriculture committees will also participate, as well as various groups defending U.S. crypto regulation.
