The CLARITY Act, a key piece of cryptocurrency legislation, just got a new lease on life. After months of stalled progress, a compromise on the thorny issue of stablecoin yields has brought the bill back to the table — and Coinbase CEO Brian Armstrong is on board.
Armstrong gave a succinct thumbs-up on X, replying to a post from Coinbase Chief Policy Officer Faryar Shirzad with a simple "Mark it up." Shirzad had shared news from Punchbowl News about the release of "final rewards language" in the CLARITY Act, signaling that a deal had been reached.
The compromise text, finalized by Senators Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), takes a nuanced approach. Cryptocurrency firms would be banned from offering rewards that are "economically or functionally equivalent" to deposit interest — a clear nod to traditional banking concerns. But the bill also directs regulators to propose a new series of stablecoin regulations, including a disclosure regime and a list of permissible reward activities. In other words, rewards aren't dead; they're just getting a rulebook.
Armstrong's endorsement carries weight because Coinbase was the one that pulled its support for the CLARITY Act back in January, precisely over this stablecoin yield issue. That move effectively killed the markup at the time. Now, with a compromise in hand, the company is back in the fold.
"In the end, the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of cryptocurrency platforms and networks," Shirzad said.
The crypto industry's reaction has been mixed but largely constructive. Jeremy Allaire, CEO of Circle Internet Group Inc. (Circle (CRCL)), gave a thumbs-up, saying, "The entire digital asset industry, which now very much includes banks of all sizes and stripes, will benefit from advancing U.S. leadership in this area." Ji Kim, CEO of the Crypto Council for Innovation, disagreed with the updated text but urged the Senate Banking Committee to promptly mark up the CLARITY Act to establish a comprehensive U.S. digital asset market structure.
Notably, there's been no official confirmation from Tillis or Alsobrooks yet. MarketDash reached out to their offices for comment.
The banking lobby, led by JPMorgan Chase CEO Jamie Dimon, has been a vocal opponent of crypto rewards. Dimon equated rewards to "interest" back in March, insisting that any cryptocurrency firm offering such services should fall under banking regulations. The compromise language seems to split the difference: it restricts the most bank-like rewards but leaves room for crypto-native reward structures.
As for Coinbase's stock, it closed Friday at $191.25, up 1.85% on the day. According to MarketDash's Edge Stock Rankings, COIN has shown strong short-term price gains but underperformed over medium- and long-term horizons, paired with a very low Momentum score. The CLARITY Act's revival could be a catalyst, but the market is still weighing the implications.
