Brian Armstrong says stablecoin use and tokenization are expanding despite the CLARITY Act delay, as the Senate returns in September. Coinbase's USDC business hangs on rewards rules.
Coinbase CEO Brian Armstrong said the Senate's failure to advance the CLARITY Act before the August recess will not slow crypto adoption. Adoption is continuing through stablecoins, tokenization and expanding digital asset markets, he argued in an Aug. 7 post on X.
Armstrong called the delay disappointing but pointed to increased stablecoin use, markets for tokenized real-world assets and broader access to perpetual futures as evidence. Companies and consumers are adopting digital assets under existing rules, he said. “The momentum behind this technology keeps growing with or without a congressional calendar,” Armstrong wrote.
His remarks separated the industry's commercial growth from the legislative timetable. Clear federal legislation could encourage investment and employment while strengthening consumer protections, he said. But companies can continue building products now.
The CLARITY Act needs 60 votes to clear the Senate's cloture threshold. Republicans require at least seven Democratic votes. Senate Majority Leader John Thune said the bill will be queued when lawmakers return from recess. A floor vote has not been formally scheduled.
Democratic lawmakers have sought stronger provisions on political conflicts of interest, consumer protection, illicit finance and market integrity. Negotiations over restrictions involving President Donald Trump's crypto interests have become one of the main obstacles. Senator Elizabeth Warren rejected the current bill, arguing it does not adequately address corruption, national security and risks to consumers.
The legislation would split oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It would establish federal rules for crypto exchanges, brokers, dealers, advisers and qualified custodians.
Stablecoin rewards are a core issue for Coinbase. The latest draft generally prohibits paying interest solely for holding payment stablecoins. It may allow rewards tied to activities such as payments, remittances, liquidity provision, staking and loyalty programs. Armstrong previously supported that compromise. Banking groups argued that permitted rewards could still draw deposits away from traditional financial institutions.
The outcome affects Coinbase's USDC business. A recent crypto.news analysis estimated the exchange generates about $1.35 billion annually through its USDC rewards arrangement.
Institutional activity supports Armstrong's broader tokenization claim. BlackRock launched two tokenized money-market products holding cash, short-term U.S. Treasuries and Treasury-backed repurchase agreements. The Depository Trust and Clearing Corporation is preparing to launch a tokenization service in October. Its working group has grown to more than 100 members, including Nasdaq, Charles Schwab, BlackRock and Circle.
DTCC completed production transactions in July involving tokenized Treasuries, equities, collateral, securities lending and margin processes. The trials used securities already held within established U.S. market infrastructure, as crypto.news reported.
COIN closed Friday at $153.60, up about 5.7% for the session. The move cannot be attributed solely to Armstrong's remarks or the CLARITY Act outlook.
Thune has said the bill will be a priority when the Senate returns. A September vote would represent only one stage of the process. Any Senate version would need to be reconciled with the House measure before it could reach the president.
Negotiations during the recess will determine whether the bill can secure enough Democratic support without losing Republican votes. Ethics restrictions, illicit finance controls, consumer safeguards and stablecoin rewards are likely to remain central to those talks. A floor vote has not been scheduled.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.