Coinbase CEO pauses Senate crypto bill but says deal can be revived
Coinbase CEO Brian Armstrong withdrew support for a Senate draft of the CLARITY Act after saying the bill favored traditional finance, threatened core crypto functions, expanded government data access and shifted regulatory power toward the SEC. His public opposition prompted Senate Banking Chair Tim Scott to postpone a key markup. Speaking at the World Economic Forum in Davos, Armstrong said the setback is temporary and he is negotiating with banks and policymakers to salvage comprehensive U.S. crypto market-structure legislation in 2026. He argued the draft would have limited stablecoin yield options and tokenization benefits, and accused banking groups of opposing competition. Armstrong highlighted 2025 as a strong year for crypto — noting the first federal stablecoin framework and growing bank partnerships with Coinbase — and reiterated a long-term bullish outlook for Bitcoin, including a 2030 $1 million target. Bitcoin’s recent price reference in the article moved from an opening price of $101,083.75 (Jan 20, 2025) to about $89,573 at publication. Key names: Brian Armstrong (Coinbase), Senate Banking Chair Tim Scott, banking groups, SEC and CFTC. Primary keywords: Coinbase, CLARITY Act, crypto market-structure, stablecoins, SEC vs CFTC, tokenization.
Neutral
Neutral — The immediate market impact is mixed. Armstrong’s withdrawal of support paused a Senate markup, injecting short-term regulatory uncertainty that can weigh on risk assets and specific crypto sectors (stablecoins, tokenization products) — a near-term bearish signal. However, Armstrong’s public negotiating posture and continued engagement with banks and policymakers signal an intent to reach a compromise, which supports longer-term clarity and institutional adoption — a bullish factor. Historical parallels: regulatory impasses (e.g., prior stalled U.S. crypto bills) typically cause short-lived volatility and sector-specific weakness, but constructive negotiations and clearer frameworks (like the 2025 federal stablecoin framework cited) tend to restore institutional appetite and price resilience. Traders should expect elevated volatility around legislative updates and statements from stakeholders. Short-term trading considerations: reduced risk appetite for stablecoin yield plays and tokens exposed to regulatory shifts; watch liquidity in centralized exchanges and stablecoin flows. Long-term considerations: successful renegotiation that balances SEC/CFTC roles and preserves core crypto functions would be net positive for institutional flows and tokenization markets. Monitor: Senate schedule, statements from Tim Scott, SEC/CFTC comments, bank coalition positions, and Coinbase partnership announcements. Key indicators: stablecoin supply/flows, exchange order books, implied vol and funding rates, and on-chain stablecoin activity.