In January 2026, Coinbase withdrew its support for the CLARITY Act (or Digital Asset Market Clarity Act), a key piece of legislation in the U.S. Senate designed to regulate the crypto asset market. This decision forced the Senate Banking Committee to postpone the vote and review of the proposal scheduled for January 15, 2026.
Reasons for rejection
The CEO of Coinbase, Brian Armstrong, argued that the company prefers "no law over a bad law." The main reasons cited were:
Ban on tokenized actions: The draft included restrictions that Coinbase considered a "de facto ban" for this sector.
Weakening of the CFTC: The final version granted greater regulatory authority to the SEC, moving away from the balance sought with the CFTC.
Restrictions on DeFi and Stablecoins: Amendments were introduced that would limit the passive yields of stablecoins and affect privacy in decentralized finance (DeFi).
Conflict with banking: Coinbase accused traditional banking institutions of trying to include measures to limit competition from crypto companies.
Current consequences
Legislative uncertainty: Although the law had already passed through the House of Representatives in 2025, Coinbase's rejection has raised doubts about whether the bill will be able to advance in the Senate before 2027.
Fracture in the industry: While Coinbase led the opposition, other companies like Ripple have maintained their support, revealing deep divisions in the crypto sector over how federal regulation should be.
Political tensions: Frictions have been reported between Coinbase and the White House over this unilateral decision, although Armstrong has denied a total break and claims that negotiations continue.
For more details, you can check the legislative tracking on the official Coinbase Policy site or updates from the Senate Banking Committee.