- Coinbase withdrew support for the Senate crypto bill over stablecoin and regulatory concerns.
- Brian Armstrong is meeting bank CEOs in Davos to restart negotiations.
- The outcome could shape whether the U.S. keeps pace with global crypto regulation.
Coinbase CEO Brian Armstrong is taking the U.S. crypto regulation debate straight to global finance’s biggest stage. Speaking from the World Economic Forum in Davos, Armstrong confirmed he is meeting with senior bank executives to revive momentum around the stalled U.S. crypto market structure bill — just days after Coinbase abruptly withdrew its support from the Senate’s revised draft.
The move underscores how fragile consensus remains around Washington’s approach to crypto regulation, even as pressure mounts for the U.S. to catch up with clearer frameworks emerging overseas.
Why Coinbase Walked Away From the Senate Draft
Coinbase’s decision to pull backing for the Senate version of the CLARITY Act came hours before a scheduled Banking Committee markup, forcing lawmakers to pause the process entirely. According to the company, the revised bill introduced several provisions that tilted the playing field away from crypto-native firms.
Among the most contentious issues were tighter limits on tokenized equities, expanded government access to DeFi transaction data, and a broader grant of authority to the Securities and Exchange Commission. Coinbase also objected to stablecoin language it says disproportionately benefits large banks.
Stablecoins and the Bank-Crypto Divide
At the heart of the dispute is stablecoin yield. The Senate draft would prevent crypto platforms from offering yield simply for holding stablecoins — a restriction long supported by banks, which argue such products could drain deposits from traditional savings accounts.
Armstrong has pushed back, saying stablecoins should create opportunities for both banks and crypto firms, provided regulation treats each side fairly. In a video posted to X, he said meetings in Davos are aimed at finding “a win-win” that can satisfy both industries and move legislation forward.
Davos Talks and a Broader Vision
Beyond Capitol Hill politics, Armstrong is using Davos to promote tokenization as a way to modernize global capital markets. He has repeatedly pointed out that roughly four billion adults worldwide lack access to quality investment products — a gap he believes blockchain technology can help close.
Armstrong plans to bring feedback from bank leaders back to U.S. lawmakers and the Trump administration, framing the current pause not as a collapse, but as a reset.
The coming weeks will be critical. Lawmakers must decide whether to amend the bill in a way that keeps crypto firms engaged, or risk further delays that leave the U.S. trailing regions with clearer regulatory paths.
Also Read: Coinbase Sparks Controversy by Abandoning Crypto Legislation – What It Means Now
For now, Davos has become an unlikely negotiating table — one where the future shape of U.S. crypto rules may hinge on whether banks and crypto companies can finally find common ground.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
