Coinbase CEO Brian Armstrong argues that banking trade groups and individual banks have divergent positions on the Digital Asset Market Clarity Act, with most banks privately welcoming the legislation despite public opposition from industry trade groups.
Armstrong first made this case at the World Liberty Forum in February 2026, noting that opposition to the CLARITY Act comes primarily from trade associations rather than banks themselves. Coinbase is already supporting crypto infrastructure development for five of the world's largest banks.
Committee Approval and Timeline
The Senate Banking Committee advanced the CLARITY Act by a bipartisan vote of 15-9 in May 2026 following a compromise on stablecoin rewards. Armstrong indicated the bill could proceed to a full Senate vote by September 15.
Banking Industry Pushback
Not all banking executives share Armstrong's assessment. JPMorgan CEO Jamie Dimon publicly criticized Armstrong's characterization of bank sentiment in May 2026, stating that banks "will not accept it that way."
What the Legislation Does
The CLARITY Act divides regulatory oversight of digital assets between the SEC and the CFTC. The bill also establishes a framework for stablecoin regulations through the related GENIUS Act. The compromise that secured committee passage involved negotiations over stablecoin rewards and market-structure rules.
Market Positioning
The bill has backing from the Trump administration and sufficient bipartisan support to have passed committee with a comfortable margin. The private sector's activity suggests major financial institutions are not waiting for legislative completion, as evidenced by existing infrastructure partnerships between banks and Coinbase.
