The U.S. Senate Banking Committee released draft text of the CLARITY Act during a scheduled markup week. Coinbase CEO Brian Armstrong publicly opposed the bill after reviewing it over 48 hours. The response came as Ripple CEO Brad Garlinghouse expressed support, highlighting a sharp divide among major crypto executives.
- •Coinbase opposes the draft, citing privacy risks, stablecoin reward limits, and weakened CFTC oversight.
- •Ripple supports the bill, arguing clearer rules outweigh uncertainty despite ongoing amendment talks.
- •Senate Banking says the bill preserves securities laws, clarifies SEC–CFTC roles, and protects developers.
Coinbase Flags Privacy, Stablecoin, and Oversight Issues
According to Brian Armstrong, Coinbase cannot support the Senate Banking draft in its current form. He said the text introduces what he described as a de facto ban on tokenized equities. He also cited provisions affecting decentralized finance, which he said would expand government access to financial records.
Moreover, Armstrong said draft amendments would end rewards on stablecoins. He noted banks could then restrict competition from crypto-based products. He also pointed to changes that, according to Coinbase, weaken the Commodity Futures Trading Commission. Armstrong said those changes would reduce innovation and elevate the Securities and Exchange Commission’s authority.
However, Armstrong acknowledged bipartisan efforts behind the legislation. Still, he said the draft would perform worse than the current regulatory environment. Coinbase, therefore, prefers no bill over what it views as a flawed framework. Armstrong later added that he remains optimistic negotiations could still produce acceptable language.
Ripple Backs Senate Effort While Talks Continue
In contrast, Ripple CEO Brad Garlinghouse welcomed the Senate Banking Committee’s move on market structure. According to Garlinghouse, the CLARITY Act represents progress toward workable crypto regulation. He said clearer rules remain preferable to regulatory uncertainty, based on Ripple’s past experience.
Notably, Garlinghouse emphasized consumer protection alongside innovation. He said Ripple continues participating in discussions during the markup process. He also expressed optimism that lawmakers could resolve outstanding issues through debate. His comments positioned Ripple as supportive, though engaged in ongoing revisions.
Senate Defends CLARITY Act Framework and Process
Meanwhile, the U.S. Senate Banking Committee defended the bill’s development and intent. According to the Committee, lawmakers spent more than six months on bipartisan negotiations. They consulted regulators, law enforcement, academics and industry participants. The Committee said the bill clarifies oversight between the SEC and CFTC. It also said securities laws remain intact and enforceable. Furthermore, the Committee stated the bill strengthens anti-money laundering rules. It added that developers and self-custody rights receive explicit protection, while misconduct remains punishable.