{"id":15296,"date":"2026-01-15T10:28:52","date_gmt":"2026-01-15T17:28:52","guid":{"rendered":"https:\/\/jasonsblog.ddns.net\/?p=15296"},"modified":"2026-01-15T10:30:00","modified_gmt":"2026-01-15T17:30:00","slug":"banks-have-been-meddling-crypto-industry-split-over-clarity-act-as-coinbase-says-no","status":"publish","type":"post","link":"https:\/\/jasonsblog.ddns.net\/index.php\/2026\/01\/15\/banks-have-been-meddling-crypto-industry-split-over-clarity-act-as-coinbase-says-no\/","title":{"rendered":"‘Banks Have Been Meddling’: Crypto Industry Split Over CLARITY Act As Coinbase Says ‘No’"},"content":{"rendered":"\n

(Headline article below) Nothing good will come from government regulations, as they hate you and don’t want you to have financial privacy or a way to build wealth they can’t tax and steal. But of interest is the talk of stablecoins and yields, as stablecoins are primarily buying US bonds as the backing, and then profiting from transactions and interest from those bonds. I can’t personally stand Coinbase because of their KYC, AML policies and high fees, but their CEO is on the money. Also of note, these stablecoin ventures are a wonderful incentive to get a lot of financial players to purchase and hold US debt which has grown to a ridiculous level, becoming difficult to sell, leading to money printing to cover it. And look at those debt numbers, $112,624 per citizen, and $355,810 per taxpayer. President Trump keeps floating ideas about giving you money and taking away income tax, but that debt needs to be paid down unless the plan is to have most of it wiped out in a major worldwide economic collapse…<\/p>\n\n\n\n

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https:\/\/www.zerohedge.com\/crypto\/banks-have-been-meddling-crypto-industry-split-over-clarity-act-coinbase-says-no<\/a><\/p>\n\n\n

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By Tyler Durden<\/p>\n\n\n\n

A division appears to be forming among crypto industry executives regarding the market structure bill, with crypto giants such as Coinbase pulling support, but others stating that any regulation is better than none.<\/strong><\/p>\n\n\n\n

\u201cCrypto builders need clear rules of the road,\u201d <\/em>said Chris Dixon, managing partner at a16z Crypto on Thursday.<\/p>\n\n\n\n

He added that over the past five years, Republicans, Democrats, and the Trump Administration \u201chave worked closely with members across the crypto industry to protect decentralization, support developers, and give entrepreneurs a fair shot \u2026 at its core, this bill does that.\u201d<\/p>\n\n\n\n

As CoinTelegraph reports,<\/a> the comments are about the controversial market structure bill, or CLARITY Act, which was due for a Senate markup this week but has been delayed by the Senate Banking Committee today.<\/p>\n\n\n\n

\u201cIt\u2019s not perfect, and changes are needed before it becomes law. But now is the time to move the CLARITY Act forward if we want the US to remain the best place in the world to build the future of crypto,\u201d <\/strong><\/em>said Dixon.<\/p>\n\n\n\n

Coin Center executive director, Peter Van Valkenburgh, was also positive, stating on Thursday that \u201cwe\u2019re optimistic about where the current market structure draft stands.\u201d<\/p>\n\n\n\n

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However, as Micah Zimmerman reports for Bitcoin Magazine,<\/em><\/a>Coinbase CEO Brian Armstrong\u00a0said<\/a>\u00a0the exchange cannot support the Senate Banking Committee\u2019s latest draft of the CLARITY Act, warning that the bill, as written, would leave the U.S. crypto industry worse off than the current regulatory status quo.<\/strong><\/p>\n\n\n\n

In a post on X, Armstrong cited several concerns, including what he described as a de facto ban on tokenized equities, new restrictions on decentralized finance that could grant the government broad access to users\u2019 financial data, and provisions that weaken the Commodity Futures Trading Commission while expanding the Securities and Exchange Commission\u2019s authority.<\/p>\n\n\n\n

\u201cAfter reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can\u2019t support the bill as written,\u201d<\/strong><\/em> Armstrong posted.<\/p>\n\n\n\n

He also criticized draft amendments<\/a> that would eliminate rewards on stablecoins, arguing they would allow banks to suppress emerging competitors.<\/p>\n\n\n\n

\u201cWe\u2019d rather have no bill than a bad bill,\u201d <\/strong><\/em>Armstrong said on X, adding that Coinbase would continue pushing for a framework that treats crypto on a level playing field with traditional financial services.<\/p>\n\n\n\n

\u201cThere are too many issues, including a de facto ban on tokenized equities, DeFi prohibitions, giving the government unlimited access to your financial records, and removing your right to privacy, erosion of the CFTC\u2019s authority, stifling innovation, and making it subservient to the SEC, [and] draft amendments that would kill rewards on stablecoins, allowing banks to ban their competition.\u201d<\/em><\/p>\n\n\n\n

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BREAKING: Coinbase CEO Brian Armstrong says Coinbase “can’t support” the crypto market structure legislation as currently written \ud83d\udc40

“We’d rather have no bill than a bad bill.” pic.twitter.com\/3BCgWw0kM9<\/a> \u2014 Bitcoin Magazine (@BitcoinMagazine) January 14, 2026<\/a><\/p>\n<\/blockquote>\n\n\n\n

Venture capitalist Tim Draper was also in support of the Coinbase chief executive, stating:<\/p>\n\n\n\n

\u201cBrian Armstrong makes sense here. The current Senate compromise is worse than no bill at all. Sounds like the banks have been meddling.\u201d<\/strong><\/em><\/p>\n\n\n\n

The comments come a day before the Senate Banking Committee is expected to mark up the CLARITY Act<\/a> on Thursday, January 15. <\/p>\n\n\n\n

The legislation is trying to clarify U.S. digital asset market structure by defining categories such as digital commodities, investment contracts, and payment stablecoins, while dividing oversight between the SEC and CFTC.<\/p>\n\n\n\n

Coinbase\u2019 issues with stablecoin rewards<\/h2>\n\n\n\n

Stablecoin rewards have emerged as a flashpoint in negotiations. Coinbase had reportedly warned lawmakers it may withdraw support for the bill if it restricts yield programs tied to stablecoins like USD Coin. <\/p>\n\n\n\n

Coinbase shares in interest income generated from USDC reserves and uses part of that revenue to offer incentives to users, including rewards of roughly 3.5% for Coinbase One customers.<\/p>\n\n\n\n

Stablecoin-related revenue may have reached<\/a> $1.3 billion in 2025, making the issue central to Coinbase\u2019s business model. <\/p>\n\n\n\n

Banking groups argue that yield-bearing stablecoins could draw deposits away from traditional banks, while crypto firms counter that banning rewards would stifle innovation and push users toward offshore platforms.<\/strong><\/p>\n\n\n\n

\u201cI\u2019m actually quite optimistic that we will get to the right outcome with continued effort,\u201d Armstrong later posted on X. \u201cWe will keep showing up and working with everyone to get there.\u201d<\/em><\/p>\n\n\n\n

Michael Saylor, executive chairman of Strategy, retweeted Armstrong\u2019s post, showing his own support with the decision. <\/p>\n\n\n\n

Bitcoin shrugs off the controversy<\/h2>\n\n\n\n

Speaking to Cointelegraph, OKX Singapore CEO Gracie Lin said that Bitcoin\u2019s latest rally \u201creminds us that markets often start pricing outcomes before policymakers conclude their debates.\u201d<\/p>\n\n\n\n

\u201cWe\u2019re seeing Bitcoin responding to renewed ETF demand, improving liquidity, and growing optimism that the Digital Asset Market Clarity Act could bring a more stable framework to U.S. digital asset markets,\u201d<\/strong> she added.<\/em><\/p>\n\n\n\n

\u201cFrom here, the focus is on three things: how CLARITY evolves through the Senate\u2019s Banking Committee, how resilient spot ETF flows prove to be, and whether the late\u2011January Fed meeting keeps financial conditions supportive – or triggers a sharp reset.\u201d<\/em><\/p>\n\n\n\n

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Bitcoin (BTC) neared $98,000 in early trading Thursday before pulling back as the key digital asset legislation hit a roadblock late Wednesday.<\/p>\n\n\n\n

Wall Street broker Benchmark views a delay of the Senate Banking Committee’s crypto market structure bill as a potentially constructive pause rather than a setback.<\/p>\n\n\n\n

“While the delay may at first appear as cause for concern among those desiring the clarity that the legislation would enable, it may ultimately be constructive, in our view, as it will provide the committees with breathing room so they can work through fundamental policy disagreements on issues such as stablecoin yield,”<\/em> analyst Mark Palmer said in a Thursday report.<\/p>\n\n\n\n

U.S. lawmakers \u00a0delayed a key procedural step toward comprehensive crypto regulation late Wednesday by postponing a planned markup of the Senate\u2019s digital asset market structure bill as negotiations intensify over stablecoin yield and tokenized securities.<\/p>\n","protected":false},"excerpt":{"rendered":"

(Headline article below) Nothing good will come from government regulations, as they hate you and don’t want you to have financial privacy or a way to build wealth they can’t tax and steal. But of interest is the talk of stablecoins and yields, as stablecoins are primarily buying US bonds as the backing, and then […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,7],"tags":[],"class_list":["post-15296","post","type-post","status-publish","format-standard","hentry","category-tech","category-world"],"blocksy_meta":[],"featured_image_src":null,"author_info":{"display_name":"Jason","author_link":"https:\/\/jasonsblog.ddns.net\/index.php\/author\/jturning\/"},"_links":{"self":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/15296","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/comments?post=15296"}],"version-history":[{"count":2,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/15296\/revisions"}],"predecessor-version":[{"id":15299,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/posts\/15296\/revisions\/15299"}],"wp:attachment":[{"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/media?parent=15296"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/categories?post=15296"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jasonsblog.ddns.net\/index.php\/wp-json\/wp\/v2\/tags?post=15296"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}