Coinbase CEO backs Senate crypto bill

Coinbase Chief Executive Brian Armstrong used a Senate push on Thursday to argue that Congress is close to passing the clearest U.S. crypto market rules yet. Armstrong told Fox Business the latest version of the CLARITY Act could reshape how Americans use money and financial markets, as the Senate Banking Committee prepared to vote on the bill later in the day. (cnbc.com) The Senate Banking Committee scheduled a 10:30 a.m. executive session on May 14 to consider H.R. 3633, the Digital Asset Market Clarity Act of 2025. (banking.senate.gov) The bill is the Senate’s market-structure effort for digital assets, and it follows last year’s enactment of the GENIUS Act, which created a federal framework for payment stablecoins. The latest Senate draft arrived after months of negotiations between crypto companies, banks and lawmakers over how far digital-asset firms should be allowed to compete with deposit-taking institutions. (foxbusiness.com) CNBC reported that the committee vote was expected to be an initial step, with additional changes still possible before any Senate floor action. ### Which bill is Armstrong backing, exactly? H.R. 3633 is the Digital Asset Market Clarity Act of 2025, a measure the Senate Banking Committee said would establish a regulatory framework for digital assets. (banking.senate.gov) Committee Republicans released updated text on May 12 ahead of the markup. The Senate Banking Committee’s section-by-section summary says the bill would set rules for digital-asset intermediaries, define when certain tokens are treated as ancillary assets, and preserve anti-fraud authorities. The committee’s majority described the legislation as creating “clear, enforceable guardrails” for digital-asset markets. (cnbc.com) ### What compromise got the bill moving again? Coinbase said on May 1 that a deal had been reached on a disputed provision covering rewards tied to stablecoins. Reuters reported that the bill had stalled earlier in 2026 because banks objected to language that could let stablecoin issuers and crypto firms offer yield-bearing products or other rewards that might pull deposits from traditional lenders. (banking.senate.gov) Senators Thom Tillis, a North Carolina Republican, and Angela Alsobrooks, a Maryland Democrat, released the compromise proposal that brought Coinbase and other crypto companies on board, CNBC reported. (banking.senate.gov) The compromise sought to permit certain usage-based rewards while barring rewards structured like bank interest, according to Reuters and CNBC. Coinbase Chief Policy Officer Faryar Shirzad said on X that banks won “more restrictions on rewards,” while preserving “the ability for Americans to earn rewards” based on crypto-platform use. (money.usnews.com) Reuters reported that Punchbowl News described the text as broadly prohibiting rewards offered in a way that is economically or functionally equivalent to interest on a bank deposit. ### Why are banks fighting over stablecoin rewards? Banks argued that stablecoin rewards could look too much like interest-bearing deposits and pull money away from the banking system. (cnbc.com) CNBC reported that banking groups said the revised language still fell short of protecting deposits, even after the compromise. The American Bankers Association’s banking journal said banks wanted senators to close what they called a loophole that would let digital-asset service providers bypass the GENIUS Act’s ban on paying interest or yield on payment stablecoins. (finance.yahoo.com) That fight helps explain why the rewards language became the central obstacle to moving the broader market-structure bill. ### What did Armstrong say about the latest draft? Brian Armstrong told Fox Business that the revised bill represented a compromise between crypto firms and banks and could transform the U.S. financial system. (cnbc.com) Fox Business reported that Armstrong framed the measure as a way to bridge standards used by the crypto industry and traditional finance. Armstrong’s comments came as Coinbase and other large crypto companies pressed lawmakers to finish rules they say would replace years of what executives have described as regulatory uncertainty. (bankingjournal.aba.com) Reuters reported on May 1 that Coinbase viewed the CLARITY Act as a way to create clear regulations that could support broader cryptocurrency adoption. ### What happens after the committee vote? The Senate Banking Committee said its May 14 session would consider the bill in executive session, with live video available through the committee website once the hearing began. (foxbusiness.com) CNBC reported that lawmakers and industry participants expected work on the measure to continue even after the committee vote, before any potential Senate floor consideration. Congress.gov shows that the earlier GENIUS Act moved from Senate passage on June 17, 2025, to House passage on July 17, 2025, before becoming law on July 18, 2025. (money.usnews.com) The CLARITY bill’s next concrete step is the Banking Committee’s May 14 markup of H.R. 3633, led by Chairman Tim Scott and committee members including Tillis and Alsobrooks. (congress.gov) (banking.senate.gov)