Armstrong Reverses Course: CLARITY Act Back On Table

Coinbase CEO Brian Armstrong has signaled willingness to renegotiate the controversial crypto market structure bill, potentially reviving legislation that appeared dead just days ago. The move comes amid escalating tensions with the White House and accusations from Citron Research that Coinbase is protecting its stablecoin revenue streams.

According to CryptoTice_ on X, Armstrong announced he's ready to "come back to the table" on the Bitcoin and crypto market structure bill, adding that "Crypto isn't rejecting regulation—it's fighting for fair regulation."

The reversal marks a dramatic shift from Armstrong's stance on January 15, when he initially opposed the bill. However, the White House's reported fury over Coinbase's position may have forced the CEO's hand. Reporter Eleanor Terret revealed that administration officials are furious with Armstrong's resistance.

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White House Threatens to Pull Support

Coin Bureau reported on X that the White House is considering withdrawing support for the CLARITY Act entirely amid the Coinbase standoff.

The CLARITY Act aims to establish clear regulatory frameworks for digital assets, but Armstrong's initial resistance stemmed from provisions that could benefit competitors. The bill would create pathways for tokenized securities—a market where Coinbase faces stiff competition from platforms like Securitize.

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Citron Research's Andrew Left exposed what he characterized as Coinbase's true motivation.

Citron Research tweeted: "Watch Brian Armstrong from Coinbase on CNBC to understand what he is afraid of—Securitize. He is fighting to protect its stablecoin yield revenue while complaining about tokenized equity restrictions."

Left pointed out that Securitize already possesses the licenses required to operate under the proposed framework, giving them an immediate competitive advantage. The CLARITY Act could level the playing field in tokenized securities—a development that threatens Coinbase's market position.

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Industry Stakes Rise as Negotiations Resume

Armstrong's willingness to negotiate signals that industry leaders recognize regulatory clarity remains achievable despite setbacks. The reopening of talks suggests the bill isn't dead but entering a revision phase where crypto firms can push for frameworks that don't favor traditional banks.

The implications extend beyond Coinbase. If negotiations succeed, the crypto industry could finally secure the regulatory certainty that has eluded it for years. However, the White House's reported frustration adds uncertainty to whether the administration will maintain support for revised legislation.

CryptoTice_ noted on X that "This isn't a reversal. It's leverage," suggesting Armstrong's move represents strategic positioning rather than capitulation.

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The controversy pits Coinbase against both policymakers and competitors. Citron Research's Left framed it as "Armstrong vs Blackrock and Trump," highlighting the political and financial stakes. With Securitize backed by major institutional players and the White House weighing intervention, Armstrong faces pressure from multiple fronts.

Whether the renegotiated bill will address Coinbase's concerns while satisfying regulators and competitors remains uncertain. The coming weeks will determine if Armstrong's reversal leads to breakthrough legislation or further industry fragmentation.

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3 Key Takeaways:

1. Armstrong reopens CLARITY Act talks after initially opposing bill, signals leverage play not capitulation
2. White House considers pulling support amid fury over Coinbase stance, regulatory clarity hangs in balance
3. Citron exposes Coinbase protecting stablecoin yields against Securitize competition in tokenized assets

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