Coinbase Withdraws Support for Senate CLARITY Act Bill

Coinbase CEO Brian Armstrong announced on January 14, 2026, via X that the company has withdrawn support for the Senate Banking Committee’s CLARITY Act draft due to several concerns.

Armstrong’s announcement highlights ongoing industry tensions over regulatory frameworks, affecting the future of tokenized equities and stablecoins, with potential repercussions across the U.S. crypto market landscape.

Coinbase Withdraws Support Over Tokenized Equities Concerns

On January 14, 2026, Coinbase’s CEO, Brian Armstrong, announced via X that the company would withdraw its support for the Senate CLARITY Act. Concerns included a de facto ban on tokenized equities and weakened CFTC authority.

Brian Armstrong emphasized the incompatibility of the draft with industry needs, citing issues with, among others, DeFi prohibitions. The Senate Banking Committee’s scheduled markup was subsequently canceled.

Mixed Reactions to Coinbase’s Legislative Stand

The crypto community displayed mixed reactions. While some leaders like Bill Hughes supported the move, U.S. Senator Cynthia Lummis remarked that it hindered regulatory progress. Discussions on industry readiness remain intense.

The decision influences potential financial and regulatory shifts in stablecoins and tokenized equities. Analysts forecast ongoing debates on crypto regulations, drawing from the GENIUS Act’s prior framework.

Brian Armstrong, CEO, Coinbase, – “After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written. There are too many issues, including: A defacto ban on tokenized equities, DeFi prohibitions, giving the government unlimited access to your financial…”: source

GENIUS Act Challenges Pave Way for CLARITY Bill

The GENIUS Act previously sought crypto regulation, yet left market structure issues unresolved. The CLARITY Act attempts a more defined classification of digital assets to bridge these gaps.

Experts from Kanalcoin suggest that further amendments are critical to balance innovation and regulation. They emphasize that historic trends indicate the industry’s demand for clarity while protecting decentralization.