Coinbase CEO Brian Armstrong said on September 19 that the Wall Street Journal is preparing a story blaming him and Coinbase for the CLARITY Act's Senate defeat. Rather than wait for publication, Armstrong posted his defense on social media, accusing the outlet of "regurgitating bank lobby talking points."
The CLARITY Act failed a Senate cloture vote on September 15, falling short of the 60 votes needed to advance despite 126 concessions made by sponsors. The defeat prompted immediate finger-pointing among lawmakers and industry figures.
Armstrong's Account of Events
Armstrong's criticism of the bill began on January 14, when Coinbase announced it could not support the initial draft. Coinbase objected to provisions regarding stablecoin yield, decentralized finance treatment, tokenization, and Commodity Futures Trading Commission authority. The objection led the Senate Banking Committee to postpone a scheduled markup.
According to Armstrong, all four areas Coinbase identified were revised in a later version. The committee advanced the revised bill 15-9 on May 14, with Democratic Senators Angela Alsobrooks and Ruben Gallego voting in favor. Armstrong stated that Coinbase strongly supported the final draft and lobbied for it through the summer.
Market and Political Reactions
U.S. spot bitcoin exchange-traded funds shed $450 million on September 15, the day of the failed cloture vote. Bitcoin's price fell below $76,000. Alsobrooks and Gallego, who backed the bill in committee, voted no on cloture.
Lawmakers offered competing interpretations of the defeat. Representative Maxine Waters blamed missing ethics safeguards around the president's crypto ventures, while Representative Tom Emmer characterized the defeat as a temporary setback.
Next Steps
Armstrong argued that the Securities and Exchange Commission and CFTC possess existing authority to establish crypto rules without congressional action. SEC Chair Paul Atkins pledged to "act decisively within the SEC's statutory authority," and CFTC Chairman Mike Selig said his agency is "locked in and ready to ship its rules."
Seven Democratic senators vowed on September 16 to continue pushing for the bill's passage.
