Coinbase CEO Brian Armstrong has publicly endorsed the latest version of the Digital Asset Market Clarity Act (CLARITY) just days before the U.S. Senate is scheduled to mark up the crypto market structure bill on Thursday. Armstrong described the bill as being in its strongest and most bipartisan position yet, following months of negotiations between the crypto industry and traditional banking sectors.
What the CLARITY Act aims to achieve
The CLARITY Act is designed to establish a comprehensive regulatory framework for digital assets in the United States, clarifying which federal agencies — namely the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) — have authority over different types of crypto assets. The bill also seeks to address longstanding ambiguities around stablecoins, decentralized finance (DeFi), and tokenized securities.
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Armstrong noted that the latest iteration includes improved provisions for DeFi protocols, tokenized stocks, and a clearer role for the CFTC in overseeing crypto spot markets. These changes came after the bill stalled in January 2025, when Coinbase and other crypto industry players rejected an earlier draft.
Stablecoin yield compromise breaks deadlock
One of the primary sticking points had been the treatment of stablecoin yield. Armstrong revealed that Senators Thom Tillis (R-NC) and Angela Alsobrooks (D-MD) brokered a compromise that left both the banking and crypto lobbies slightly dissatisfied — a sign, he argued, of a balanced outcome.
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“I think there was a healthy compromise there,” Armstrong said. “Both sides left a little bit unhappy, but at least we got to a place that we can all live with.”
The resolution of the stablecoin yield issue is seen as a critical step forward, as it addresses bank concerns about deposit competition while preserving the ability of crypto firms to offer yield-bearing products.
Why this matters for the broader crypto market
The CLARITY Act has been closely watched by investors, exchanges, and developers alike. If passed, it would provide the legal certainty that many industry participants argue is necessary for mainstream adoption. According to the National Cryptocurrency Association’s 2025 State of Crypto Holders report, approximately 20% of U.S. adults — or about one in five Americans — now own cryptocurrency. The survey of 54,000 residents found that 67% of holders are under 45, and 52% use crypto primarily as an investment tool for their financial future.
A separate HarrisX poll conducted earlier this month among 2,008 registered voters found that 52% support passing the CLARITY Act into law, while only 11% oppose it. That level of bipartisan public backing adds political momentum as the Senate prepares for markup.
Conclusion
With Armstrong’s endorsement and a compromise on stablecoin yield in place, the CLARITY Act now faces its most critical test yet in the Senate markup on Thursday. While challenges remain, the bill appears to have stronger cross-industry and cross-party support than at any previous point in its legislative journey. For the crypto industry, passage would mark a watershed moment in U.S. regulatory clarity.
FAQs
Q1: What is the CLARITY Act?
The Digital Asset Market Clarity Act (CLARITY) is a U.S. bill that aims to create a clear regulatory framework for digital assets, defining the roles of the CFTC and SEC, and addressing stablecoin regulation, DeFi, and tokenized securities.
Q2: Why did the bill stall in January 2025?
The bill stalled after Coinbase and other crypto industry leaders rejected the initial draft, primarily over disagreements on stablecoin yield and the scope of regulatory authority.
Q3: How many Americans own cryptocurrency?
According to the National Cryptocurrency Association’s 2025 report, about 20% of U.S. adults, or roughly 52 million people, own cryptocurrency. A HarrisX poll found 52% of registered voters support the CLARITY Act.
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