Coinbase CEO Brian Armstrong will be meeting with bank executives to negotiate the terms of the U.S. crypto market structure bill during the World Economic Forum in Davos this week.
Key Points
- •Coinbase CEO Brian Armstrong will meet with bank executives at the World Economic Forum to push for changes to the stalled crypto bill.
- •Armstrong withdrew support for the CLARITY Act after reviewing a Senate draft last week.
Armstrong's Stance on Crypto and Financial Systems
“I’m talking to different world leaders about economic freedom and how crypto can update their financial system,” Armstrong said in a video shared via an X post.
“Stablecoins should be an opportunity for both banks and crypto companies as long as we’re all treated on a level playing field,” he added.
Coinbase Pulls Support for CLARITY Act
Last week, Coinbase pulled its support for a revised draft of the CLARITY Act that was presented by the Senate Banking Committee.
After reviewing the 182-page draft just two days before it was scheduled for a markup vote, Armstrong argued that the new version was “materially worse than the current status quo” as the bill sought to limit core crypto functions that he deemed would set the industry back.
A key sticking point was stablecoin yields, which the banking sector has claimed could drain traditional bank deposits. Armstrong argued that it could restrict innovation in the stablecoin space and hand an unfair advantage to legacy financial institutions.
Other concerns he raised involved expanded government access to financial data and a shift in regulatory power away from the Commodity Futures Trading Commission toward the Securities and Exchange Commission.
As a major crypto lobbyist, Coinbase’s withdrawal had immediate consequences, and the Senate markup session was postponed indefinitely.
World Economic Forum Becomes Venue for Negotiations
The sudden legislative impasse meant a new strategy was needed. Davos, where the World Economic Forum is being held from Jan. 19 to 23, has now become the venue for high-level negotiations outside of the typical D.C. political pressure.
According to Reuters, President Donald Trump is also expected to make an appearance at the forum, but it is unclear whether crypto is on his agenda.
“We’re going to continue to work on the market structure legislation, and meet with some of the bank CEOs to figure out how we can make this a win-win,” Armstrong added.
Armstrong will also engage with world leaders on how crypto can modernize outdated financial infrastructure while exploring how tokenization can help democratize access to capital markets.