Larry David’s Take: Coinbase CEO Flips Like a Pancake on CLARITY Act

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Pretty, Pretty, Pretty Good Highlights

  • So, Brian Armstrong, the Coinbase CEO, finally decides to get on board with the CLARITY Act after playing hard to get twice. What, was he waiting for a better offer?
  • Turns out, a little nudge from Washington-Scott Bessent, Paul Atkins, and the gang-was all it took. You’d think he’d have figured it out sooner, but hey, better late than never, right?
  • This bill could shake up U.S. crypto regulation, even if it means Coinbase has to kiss a chunk of its $1.35B stablecoin revenue goodbye. Ouch.

So, Brian Armstrong, the big shot CEO of Coinbase, finally decides to endorse the Digital Asset Market Clarity Act. Big whoop. After months of playing hardball, he suddenly tweets his support on X like it’s no big deal. “We agree,” he says, like he just discovered fire. Thanks, Brian. Real insightful.

Apparently, it took Treasury Secretary Scott Bessent’s op-ed in the WSJ and a tweet to get him moving. You’d think the guy running one of the biggest crypto exchanges would be a little more proactive, but nope. He needed a nudge. Classic.

And let’s not forget, Armstrong was the one holding up the whole thing, twice, because of stablecoin yield rules. “We’d rather have no bill than a bad bill,” he said. Oh, the drama. But now? Suddenly, it’s all good. Sure, Jan.

What flipped his switch?

Well, Bessent called out the Senate on X, and SEC Chairman Paul Atkins jumped on the bandwagon. Even David Sacks and Senator Cynthia Lummis chimed in. It was like a group text Armstrong couldn’t ignore. So, he caved. Shocking.

Bessent framed it as a national security issue, saying the U.S. is lagging behind Singapore and Abu Dhabi. Big deal. And he tied it to the GENIUS Act, which Trump signed in 2025. Because nothing says “future-proof” like a Trump-signed bill.

The Armstrong rollercoaster

Armstrong’s relationship with the CLARITY Act has been more dramatic than a Seinfeld episode. In July 2025, he was all “Huge! CLARITY heading to the Senate!” But then the Senate Banking Committee rewrote the bill, and suddenly it was a dealbreaker. Banks didn’t like the stablecoin yield loophole, and Armstrong decided to take a stand. Brave.

On January 14, 2026, he posted on X that Coinbase couldn’t support the bill. Four big objections, including the stablecoin yield issue. “We’d rather have no bill than a bad bill,” he declared. The Senate postponed the markup, and the White House was reportedly miffed. Patrick Witt even fired back, saying Armstrong would hate a future Dem version even more. Classy.

February: A brief thaw

Then, in February, Armstrong softened up at the World Liberty Forum. He met with Senator Bernie Moreno and said there was a 90% chance the bill would pass by April. Sure, Brian. And I’m 90% sure I’ll win the lottery this week. He even met with Trump, who then accused banks of undermining the GENIUS Act. Because nothing says “bipartisan” like a Trump tweet.

March: The second rejection

But then, in March, Armstrong rejected the bill again. Senators Tillis and Alsobrooks tried to compromise on stablecoin yields, but Coinbase said no. Again. The stock dropped, and the #BoycottCoinbase movement gained traction. Armstrong stayed silent for two weeks. Real leadership there.

What changed his mind?

Well, the White House released a report saying a full stablecoin yield ban would cost consumers $800 million. Oops. Then, there were rumors of a compromise on the yield language. Plus, Coinbase got conditional approval for its National Trust Company. And let’s not forget, the political clock is ticking. Armstrong probably realized he was fighting a losing battle.

What’s at stake for Coinbase?

Oh, just $1.35 billion in stablecoin revenue. No biggie. If the CLARITY Act restricts passive yield, Coinbase will have to rethink its USDC rewards program. But hey, at least they’ll get a clear federal framework. Silver linings, right?

What’s next?

The Senate’s back on April 13, and the Banking Committee markup is in the second half of April. Tim Scott’s in charge, and the stablecoin yield text needs to hold. If it passes, it’ll need 60 votes in the Senate. Democrats want ethics provisions, so there’s that. Narrow window, high stakes. And Armstrong’s finally on board. About time.

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2026-04-10 08:04