Coinbase CEO Brian Armstrong has accused entrenched traditional financial incumbents of actively lobbying against the CLARITY Act, framing the legislative fight as an effort to block crypto companies from competing in US financial services. Speaking on Katie Miller’s podcast and posting on X, Armstrong said established players “don’t want competition from crypto companies that would provide better financial services.”
The CLARITY Act aims to create a federal regulatory framework for digital assets, including how tokens are classified and where SEC and CFTC responsibilities begin and end. Armstrong connected the bill to broader political momentum: Donald Trump’s 2024 promise to remove former SEC Chair Gary Gensler, an executive order calling for clearer crypto rules, the appointments of SEC Chair Paul Atkins and CFTC Chair Mike Selig, and passage of the GENIUS Act for stablecoins.
Armstrong also named Senator Elizabeth Warren as among those seeking to stop the legislation. The Senate is set to consider a motion to proceed on September 15. With Republicans holding 53 seats, the measure needs 60 votes for cloture, meaning at least seven Democratic or independent votes would be required if all Republicans support it.
Banks remain a central point of tension, especially over whether crypto companies should be allowed to offer rewards on customer stablecoin holdings. Traditional lenders argue such products could pull deposits away from banks. Armstrong countered that the bill would benefit banks, law enforcement, crypto companies, and consumers, writing: “It’s time to get the Clarity Act, which will protect consumers, over the finish line.”
