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Coinbase CEO Brian Armstrong announced on January 19, 2026, that he will engage directly with bank executives at the World Economic Forum in Davos this week to resolve remaining differences on the CLARITY Act, the stalled U.S. crypto market structure bill, after Coinbase withdrew support last week over stablecoin yield restrictions and perceived SEC overreach.
Coinbase CEO Brian Armstrong: "They're trying to protect their own profit margins, taking money out of the pockets of hardworking, average Americans." pic.twitter.com/H250fYEyE7
— unusual_whales (@unusual_whales) January 19, 2026
In a statement posted on X, Armstrong said: “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.” He emphasized that stablecoins should create opportunities for both crypto firms and traditional banks on a level playing field, promising to relay outcomes to the Senate and administration to advance the bill.
In general, love your posts, but this is not accurate. The White House has been super constructive here.
They did ask us to see if we can go figure out a deal with the banks, which we're currently working on.
Actually, we've been cooking up some good ideas on how we can help… https://t.co/t1bK48oRc0
— Brian Armstrong (@brian_armstrong) January 17, 2026
The withdrawal came after the Senate Banking Committee revealed updated text that would bar digital asset providers from paying yield on idle stablecoin balances, while allowing activity-based rewards tied to transactions, staking, or liquidity provision. The restriction is firmly in line with banking sector opposition, which argues such yields could drain deposits from traditional savings accounts and create instability.
The Senate Banking Committee postponed its anticipated markup hearing without a new date, but Armstrong and other industry leaders remain committed. Kraken co-CEO Arjun Sethi warned that abandoning the effort “would lock in uncertainty,” while The Digital Chamber CEO Cody Carbone called inaction “unacceptable” when clarity is within reach. Sen. Cynthia Lummis, reiterated that talks continue, stating lawmakers are “closer than ever.”
The CLARITY Act’s fate is highly dependent on whether Armstrong can broker a compromise on stablecoin yields during Davos. A workable bill would reduce legal uncertainty, clarify token classifications, and unlock domestic institutional flows, potentially lowering costs and improving access.
Crypto market structure is delayed because they will be discussing it at Davos.
It’s coming.
— Wendy O (@CryptoWendyO) January 20, 2026
But the banking sector’s opposition to yield programs points to a deeper conflict. Crypto wants to compete directly with savings accounts, while banks see systemic risk in deposit flight. The 60-vote Senate requirement means neither side can dictate terms, any deal will likely limit yields or tie them to specific activities.
Critically, if no resolution emerges, the U.S. risks prolonging regulatory ambiguity, pushing more activity offshore or into gray areas. Davos is a rare chance for direct negotiation, but success will depend on whether banks and crypto can agree on a shared playing field before the political windows close.
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