On January 19, 2026, CryptoSlate published an article detailing heated exchanges between Coinbase CEO Brian Armstrong and industry reporter Eleanor Terrett regarding the Senate’s Digital Asset Market Clarity Act (CLARITY Act). Armstrong publicly refuted claims of White House retaliation but acknowledged the use of the term “rug pull” to describe his withdrawal of support just before the committee’s planned markup.
Timeline of Events
- January 9: Senate Banking Committee schedules markup for January 15.
- January 14: Armstrong tweets that “no bill is better than a bad bill,” citing tokenized equity restrictions and stablecoin reward limits.
- January 15: Committee postpones executive session due to ongoing negotiations.
- January 19: CryptoSlate report amplifies claims of White House displeasure and bipartisan “good faith” talks.
Central Points of Contention
Coinbase highlighted four main objections to the revised bill:
- Effective ban on tokenized equities.
- Expanded AML and BSA data requirements for DeFi protocols.
- Broadened SEC authority over digital asset markets.
- Stablecoin and banking provisions deemed favorable to traditional banks at the expense of crypto-native payment systems.
Implications for U.S. Crypto Regulation
The pause underscores fractured consensus between industry stakeholders and lawmakers. Critics warn that protracted delays risk ceding leadership to jurisdictions with clearer frameworks, while supporters argue the extra time will yield a more balanced outcome. Market observers remain cautious, noting that regulatory uncertainty continues to weigh on institutional capital allocation decisions.
Next Steps
Senate leaders have indicated that final negotiations will take place behind closed doors, with no new date announced. Stakeholders across the crypto industry will be closely monitoring whether Coinbase re-joins the coalition or if further amendments reshape the bill’s trajectory.
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