Coinbase CEO Brian Armstrong said crypto adoption keeps advancing even though the Senate pushed the CLARITY Act vote to September. He pointed to growing stablecoin use and tokenization projects from BlackRock and the DTCC as evidence, while Coinbase shares closed Friday's session up about 5.7%.
Coinbase CEO Brian Armstrong says the industry does not need Congress to keep growing. The Senate failed to advance the CLARITY Act before its August recess, but Armstrong argued the setback has not slowed companies or consumers from adopting digital assets.
Armstrong points to adoption beyond Congress
An Aug. 7 post on X from Armstrong pointed to increased stablecoin use, growing markets for tokenized real-world assets and broader access to perpetual futures. In that post, he said: "The momentum behind this technology keeps growing with or without a congressional calendar."
He separated the industry's commercial growth from the legislative calendar, while maintaining that Congress still has a role in creating a consistent federal framework.
CLARITY Act vote moves to September
Senate Majority Leader John Thune said the bill would come up when lawmakers return from recess, after Democrats declined to support an accelerated pre-recess process. The legislation needs 60 votes to clear the Senate's cloture threshold, so Republicans need support from at least seven Democrats, assuming every Republican backs it.
Democratic lawmakers want stronger provisions on political conflicts of interest, consumer protection, illicit finance and market integrity. Negotiations over restrictions tied to President Donald Trump's crypto interests remain one of the main obstacles. Senator Elizabeth Warren has also rejected the current draft, arguing it does not adequately address corruption, national security and consumer risks.
Stablecoin rewards remain a sticking point
Stablecoin rewards remain a particular concern for Coinbase under the bill. The CLARITY Act would divide oversight between the SEC and the CFTC and set federal rules for exchanges, brokers, dealers, advisers and qualified digital asset custodians. Its latest draft generally bars companies from paying interest or yield solely for holding payment stablecoins, though it may still allow rewards tied to payments, remittances, liquidity provision, staking and loyalty programs.
Armstrong previously backed that compromise, but several banking groups argue the permitted rewards could still pull deposits away from banks. A crypto.news analysis estimated Coinbase generates about $1.35 billion annually through its USDC rewards arrangement, so the outcome matters directly to the exchange's business.
Tokenization builds the case
Recent institutional activity backs Armstrong's broader tokenization argument. BlackRock launched two tokenized money-market products holding cash, short-term Treasuries and Treasury-backed repurchase agreements. The Depository Trust and Clearing Corporation is preparing an October tokenization service whose working group has grown to more than 100 members, including Nasdaq, Charles Schwab, BlackRock and Circle.
Coinbase shares closed Friday at $153.60, up about 5.7% for the session, though the move cannot be attributed solely to Armstrong's remarks or the CLARITY Act outlook.
Source: crypto.news
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