{"id":375646,"date":"2026-01-17T18:42:15","date_gmt":"2026-01-17T18:42:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/375646\/"},"modified":"2026-01-17T18:42:15","modified_gmt":"2026-01-17T18:42:15","slug":"clarity-act-ripple-says-yes-coinbase-walks-away","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/375646\/","title":{"rendered":"Clarity Act: Ripple Says Yes, Coinbase Walks Away"},"content":{"rendered":"

Bitcoin<\/a>\u2019s rally this week hit a wall right around the time the Senate Banking Committee released<\/a> its \u201cMyth vs. Fact\u201d explainer on the Digital Asset Market Clarity Act of 2025 (H.R. 3633, the Clarity Act). The timing feels far from coincidental.<\/p>\n

After years of regulatory uncertainty, the Clarity Act passed both House committees (Financial Services and Agriculture) in late 2025. It is the most serious attempt yet to give the U.S. a coherent federal framework for digital assets. It assigns the CFTC primary authority over \u201cdigital commodities\u201d (non-security tokens like Bitcoin<\/a> and post-merge Ethereum<\/a>) and intermediaries, while preserving SEC oversight of primary market sales that still meet the Howey test<\/a>.<\/p>\n

The Senate Banking Committee\u2019s January 14, 2026, statement framed the bill as a protective, pro-innovation measure that will:<\/p>\n

Protect Main Street investorsKeep capital and innovation inside the U.S.Safeguard national security<\/p>\n

Yet one of the loudest voices against it has been Coinbase.<\/p>\n

Why is Coinbase Blocking the Clarity Act?<\/p>\n

This week Coinbase CEO Brian Armstrong took to social media to share his misgivings about the Clarity Act. He stated<\/a> how the bill had too many issues including:<\/p>\n

A defacto ban on tokenized equitiesDeFi<\/a> prohibitions, giving the government unlimited access to your financial records and removing your right to privacyErosion of the CFTC\u2019s authority, stifling innovation and making it subservient to the SECDraft amendments that would kill rewards on stablecoins, allowing banks to ban their competition<\/p>\n

After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can\u2019t support the bill as written.<\/p>\n

There are too many issues, including:<\/p>\n

\u2013 A defacto ban on tokenized equities
\u2013 DeFi<\/a> prohibitions, giving the government unlimited access to your financial\u2026<\/p>\n

\u2014 Brian Armstrong (@brian_armstrong) January 14, 2026<\/a> <\/p>\n

On the same day Faryar Shirzad, Chief Policy Officer at Coinbase, spoke<\/a> with CNBC. He addressed the problem regarding rewards on stablecoins, by saying that Coinbase is looking at the interests of consumers first and foremost. He also shared how the work being done by StandWithCrypto has been extraordinary. 250,000 messages have been sent to members of Congress about misgivings amongst consumers related to stablecoin<\/a> rewards.<\/p>\n

Faryar was complimentary about the work being done by legislators but highlighted how \u201cthe details matter.\u201d He pointed to how the matter now rested in the hands of the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, Senator Tim Scott (Republican).<\/p>\n

The Senator stated<\/a> on the same day how \u201cI\u2019ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.<\/p>\n

\u201cThis bill reflects months of serious bipartisan negotiations and real input from innovators, investors, and law enforcement. The goal is to deliver clear rules of the road that protect consumers, strengthen our national security, and ensure the future of finance is built in the United States.\u201d<\/p>\n

What does this mean for digital assets investors though?<\/p>\n

Why are Stablecoin Rewards so Important?<\/p>\n

There are many online commentators besides the leadership team at Coinbase who believe that the banking industry is putting its interests ahead of those of the consumer. The average reward for staking USDC (Circle\u2019s US Dollar-backed stablecoin<\/a>) is 3.5% according to the Coinbase website. At the same time leading banks like Chase or Wells Fargo offer low interest on deposits, often less than 1%. The exception is for Certificate of Deposit accounts which can offer up to 4% but need a minimum cash amount to be locked for a period.<\/p>\n

The risk of capital flight is clear to see. And, while bank deposits are insured by the FDIC up to $250,000, the same guarantees don\u2019t apply to stablecoins. With a large majority of crypto enthusiasts represented by a younger demography there is a risk that banks are unable to compete with returns being offered by stablecoin<\/a> issuers.<\/p>\n

Brian Moynihan, CEO of Bank of America, warned<\/a> during the bank\u2019s investor presentation this week that there is a possibility of $6 trillion in deposits moving into stablecoins if rewards remain.<\/p>\n

In the case of Coinbase there is one more element to consider. In the first quarter of 2025, Coinbase earned<\/a> roughly $300 million in distribution payments from Circle. A revenue stream that is linked to rewards. If this reward pool is removed, Coinbase stands to lose around $1 billion in revenue per year. Not to mention the loss of rewards its customers would experience.<\/p>\n

This problem has been part of the reason why the grassroots movement StandWithCrypto has gained so much attention. The organization is fighting for consumers to keep hold of their rewards. At the same time banks are lobbying the Senate to have these rewards removed.<\/p>\n

Who is Supporting the Clarity Act?<\/p>\n

The firms supporting the Clarity Act include Andreessen Horowitz, Ripple<\/a>, Kraken and others. Long-term crypto enthusiasts won\u2019t be surprised to see Ripple<\/a> listed. As for Kraken and Andreessen Horowitz, they both have business models that the Act would help grow.<\/p>\n

Brad Garlinghouse<\/a>, CEO of Ripple<\/a> Labs, posted<\/a> on X this week, how \u201cclarity beats chaos, and this bill\u2019s success is crypto\u2019s success.\u201d Ripple<\/a> continues to be at the table and remains optimistic.<\/p>\n

Dante Disparte, Chief Strategy Officer of Circle, posted<\/a> on X this week, how \u201cwe encourage Congress to remain engaged in a bipartisan manner on advancing crypto market structure rules that promote rules-based competition in broader digital assets markets \u2013 without reopening the GENIUS Act.\u201d<\/p>\n

Arjun Sethi, Co-Ceo at Kraken, posted<\/a> on X this week, how him and \u201cKraken remain fully committed to supporting Chairman Scott and Subcommittee Chair Lummis\u2019s efforts to advance the market structure bill.<\/p>\n

\u201cThis legislation is not about favoring any single company or business model. It is about ensuring that US based exchanges and financial institutions can compete globally on a level playing field rather than operating at a structural disadvantage to foreign counterparts with clearer rules.\u201d<\/p>\n

The Future of Crypto in the U.S.<\/p>\n

One person that has a lot of skin in the game is David Sacks<\/a>, the White House AI and Crypto Advisor. It\u2019s been almost a year since David started in his role. The Genius Act<\/a> will have been a major milestone for him, but the Clarity Act would be the icing on the cake. \u00a0<\/p>\n

David has been working with Senator Scott on the Clarity Act for some time. He posted<\/a> on X this week how \u201cThe White House remains committed to working with Chairman Scott, members of the Senate Banking Committee, and industry stakeholders to pass bipartisan crypto market structure legislation as soon as possible.\u201d<\/p>\n

He will need to pass it as soon as possible. A government shutdown may be on the cards later this month. Later in 2026 there are mid-terms where a Blue Wave may affect the Republicans ability to pass legislation.<\/p>\n

For those of you hoping to see a further rise in XRP or Bitcoin<\/a> prices, David and the Senate need to put a shift in. For bankers who want to keep the status quo, you better hope that Coinbase gives up a large revenue stream without too much resistance. More importantly, for legislators around the world looking at how to implement legislation in their own countries, you better keep watching this space. We are.<\/p>\n

Author: Andy Samu<\/a><\/p>\n

See Also:<\/p>\n

Stand With Crypto Drove Pro-Crypto Policy Momentum in 2025, Adding 675,000 New Advocates, Expanding to All 50 States | Disruption Banking<\/a><\/p>\n

Stand With Crypto Applauds Senate Confirmation of Mike Selig as Chair of the Commodity Futures Trading Commission | Disruption Banking<\/a><\/p>\n