The US Senate has paused the passing of one of the most significant Acts aimed at regulating cryptocurrencies after Coinbase CEO Brian Armstrong raised objections regarding its provisions.
The draft legislation, named the CLARITY Act, is aimed at offering a comprehensive regulatory framework for cryptocurrencies, offering a clear framework as to when tokens are to be treated as securities or commodities.
After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.
There are too many issues, including:
– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…— Brian Armstrong (@brian_armstrong) January 14, 2026
Armstrong’s opposition comes at a time when other financial institutions, banks and crypto exchanges are also pushing for amendments to the CLARITY Act to suit their interests. They are particularly concerned about the expanded role of the US Securities and Exchange Commission (SEC) to handle stablecoins and tokenised equities. The changes in the bill could reduce the role of the Commodity Futures Trading Commission, making it subservient to the SEC.
Besides this, various consumer protection issues remain unresolved in the draft, while many lawmakers remain divided over its provisions. The next steps for the bill are unclear, even as the US Senate Banking Committee, which is debating the bill, said that talks with stakeholders remain active. For now, the bill remains on hold as negotiations continue.
The CLARITY Act is the second key crypto legislation that US President Donald Trump had promised to pass as a condition for crypto donors who funded his re-election campaign. In July 2025, the US passed the GENIUS Act, approving a dedicated regulatory framework for cryptocurrencies.
