Coinbase Reverses Course: Armstrong Backs CLARITY Act After January Opposition

Coinbase CEO Brian Armstrong is now championing the Digital Asset Market Clarity Act—a stark reversal from his January stance when the crypto exchange withdrew support and blocked the bill's committee progress.

In a Thursday X post, Armstrong signaled that "it's time" for Congress to pass the CLARITY Act, aligning himself with US Treasury Secretary Scott Bessent's recent Wall Street Journal op-ed calling for swift legislative action. After months of intensive negotiations between lawmakers and industry stakeholders, Armstrong characterized the current version as a "strong bill" worthy of passage.

The 180-Degree Turn

This endorsement marks a dramatic pivot. Just three months earlier, Armstrong told the Senate Banking Committee that Coinbase couldn't support the legislation "as written"—a move that forced lawmakers to postpone the critical committee markup. At that point, Armstrong predicted passage within weeks, but thorny issues around ethics, tokenized equities, and stablecoin yield mechanics derailed momentum.

Coinbase's legal chief Paul Grewal suggested last week that negotiators were "very close to a deal," signaling the impasse may finally be breaking.

The Path Forward Remains Unclear

The CLARITY Act still needs two committee approvals before reaching a full chamber vote. The Senate Agriculture Committee already approved the bill in January, but the Senate Banking Committee—which handles securities regulation aspects—hasn't scheduled its markup as of Friday. Both panels must coordinate on overlapping securities and commodities jurisdiction before advancing the crypto bill.

Washington's Growing Crypto Influence

Armstrong's latest move adds fuel to an ongoing debate: Is crypto's influence in Washington becoming outsized?

Coinbase and Ripple Labs executives have been central to discussions with Trump administration officials on market structure. Armstrong reportedly met with President Trump before the latter publicly demanded immediate action on crypto regulation—a sequence that hasn't gone unnoticed by observers tracking industry-government alignment.

The timing appears fortuitous for major crypto players. Last week, the Office of the Comptroller of the Currency approved Coinbase's application for a national bank trust charter, following December approvals for Paxos, Ripple Labs, BitGo, Circle, and Fidelity Digital Assets. The cluster of regulatory wins raises questions about whether crypto firms' elevated political access is translating into tangible regulatory advantages.

Whether Armstrong's endorsement accelerates CLARITY Act passage remains unclear. Senate Banking Committee leadership hasn't signaled urgency, and technical disagreements persist among stakeholders. Still, with Treasury Department backing and a major exchange CEO now onside, the legislative path looks more viable than it did in January.