Key Takeaways
- Brian Armstrong, Coinbase’s CEO, has reversed his January position and now publicly supports the CLARITY Act
- Scott Bessent, the Treasury Secretary, penned a Wall Street Journal opinion piece calling for immediate congressional action
- A Senate Banking Committee vote is scheduled to occur before April concludes
- The central disagreement involves whether platforms can compensate users with yield on stablecoin holdings
- Senator Cynthia Lummis has stated this represents the final opportunity to enact the legislation before 2030
The American cryptocurrency sector is mounting an intensive campaign to advance the Digital Asset Market Clarity Act through Congress, with major stakeholders now presenting a united front following extensive delays.
Brian Armstrong, who leads Coinbase, declared on X earlier this week that “it’s time to pass the Clarity Act.” This represents a notable departure from his January stance, when he retracted Coinbase’s endorsement, stating the legislation couldn’t receive support “as written.” His withdrawal at that time prompted the Senate Banking Committee to postpone a critical markup session.
We agree. Thank you @SecScottBessent for saying it. It's time to pass the Clarity Act.
Grateful for all the bipartisan work among Senators and staff over the past several months to make this a strong bill. https://t.co/jHoZ1bfLVZ pic.twitter.com/YBKebDkq8B
— Brian Armstrong (@brian_armstrong) April 10, 2026
Armstrong characterized the updated version of the legislation, following extensive negotiations among legislators, banking institutions, and cryptocurrency firms, as a “strong bill.”
Scott Bessent, serving as Treasury Secretary, amplified the administration’s position. His Wall Street Journal op-ed this week urged immediate legislative action. “Senate floor time is scarce, and now is the time to act,” Bessent emphasized.
The Senate Banking Committee, where the legislation has languished for more than twelve months, has now committed to conducting a vote by month’s end.
The Central Conflict Over Stablecoin Yield
The primary obstacle centers on the regulatory treatment of stablecoin yield programs. The GENIUS stablecoin legislation, enacted last July, prohibits stablecoin issuers from directly compensating holders with interest. However, the law doesn’t prevent third-party services like Coinbase from providing such rewards.
Traditional banking institutions contend that permitting these yield programs would drain deposits from conventional financial entities, particularly affecting smaller community banks. Cryptocurrency advocates counter that limiting these rewards would stifle technological advancement.
A White House economic analysis published this week concluded that stablecoin yield programs pose minimal threat to traditional bank lending capabilities. Banking representatives disputed these findings, arguing the analysis failed to examine specific impacts on community banking institutions and deposit retention.
According to a banking industry source who spoke with The Block on Friday, efforts continue to develop more precise language addressing the yield restriction to accommodate lending concerns.
Another source indicated current efforts concentrate on “getting the banks in line to support the compromise,” noting: “Seems crypto is nearly there.”
The Path Forward
Paul Grewal, Coinbase’s chief legal officer, indicated last week that legislators were “very close to a deal.”
Should the legislation advance through the Senate Banking Committee, reconciliation with the Senate Agriculture Committee’s alternative version will be necessary. Passage on the full Senate floor demands 60 affirmative votes, requiring bipartisan cooperation beyond Republican support alone.
Senator Cynthia Lummis, among the bill’s most vocal proponents, announced Friday she won’t pursue re-election and her tenure concludes in January 2027. “This is our last chance to pass the Clarity Act until at least 2030,” she wrote on X.
The Office of the Comptroller of the Currency has recently granted Coinbase approval for a national bank trust charter, following comparable authorizations granted to Paxos, Ripple Labs, BitGo, Circle, and Fidelity Digital Assets.
