Brian Armstrong has pushed back against reports suggesting the White House is preparing to withdraw support for the Digital Asset Market Clarity (CLARITY) Act following tensions with Coinbase.
Addressing recent claims, Armstrong described the administration’s posture as “super constructive,” stressing that dialogue with policymakers is ongoing rather than broken.
White House Mediation, Not Retaliation
Armstrong said the White House has taken an active role in trying to move the legislation forward, including asking Coinbase to negotiate a compromise with traditional banks.
In general, love your posts, but this is not accurate. The White House has been super constructive here.
They did ask us to see if we can go figure out a deal with the banks, which we're currently working on.
Actually, we've been cooking up some good ideas on how we can help… https://t.co/t1bK48oRc0
— Brian Armstrong (@brian_armstrong) January 17, 2026
According to him, these discussions center on potential revenue-sharing or yield structures that could satisfy both crypto firms and banking institutions. Talks with banking stakeholders are currently underway.
“No Bill Is Better Than a Bad Bill”
Reaffirming his opposition to the current draft, Armstrong said Coinbase withdrew support because the bill, as written, would eliminate stablecoin rewards, effectively granting banks a monopoly over yield-bearing digital money. He argued that banning stablecoin yield sharing would strip Coinbase of roughly $1 billion in annual revenue and undermine competition.
“I want regulatory clarity,” Armstrong said, “but I’d rather have no bill than a bad bill.”
Focus Shifts to Community Banks
To address political concerns, Coinbase is now drafting new policy proposals aimed at helping community banksparticipate in the digital asset economy. Armstrong framed this as an effort to show that crypto infrastructure can complement, rather than replace, smaller financial institutions.
Why Coinbase Opposes the Draft
Armstrong warned that without changes, the CLARITY Act would be “catastrophic” for the industry due to several provisions that:
- Impose a de facto ban on tokenized equities
- Introduce restrictive language targeting Decentralized Finance (DeFi)
- Subordinate the Commodity Futures Trading Commission (CFTC) to the U.S. Securities and Exchange Commission (SEC), which he says would choke innovation
- Prohibit sharing stablecoin yields with users, concentrating power within traditional banks
Legislative Status
The Senate Banking Committee postponed the CLARITY Act markup indefinitely after Coinbase formally withdrew support on January 14, 2026. While Terrett maintains that White House backing now depends on Coinbase reaching a deal with banks, Armstrong insists the administration remains a “very helpful” partner and that negotiations are still very much alive.
