- Polymarket odds for the CLARITY Act passing jumped to 90% in one day
- Coinbase CEO Brian Armstrong says the bill could be a “win-win-win”
- Stablecoin rewards remain the biggest dispute between banks and crypto firms
Coinbase CEO Brian Armstrong says the U.S. crypto market structure bill is making significant progress, even as negotiations between banks and crypto firms continue behind the scenes. Speaking during discussions at the World Liberty Forum in Florida, Armstrong said he expects the Digital Asset Market CLARITY Act to eventually produce a “win-win-win” outcome for the crypto industry, banks, and consumers.
His comments come as market expectations for the legislation’s passage have surged. On prediction platform Polymarket, the odds of the CLARITY Act being signed into law this year jumped to roughly 90%, up sharply from about 60% just a day earlier.
Armstrong Pushes Back Against Claims Coinbase Blocked the Bill
Armstrong addressed criticism that Coinbase had delayed the bill’s progress. Some industry observers suggested the company’s objections to certain provisions had slowed the legislative process.
The Coinbase CEO rejected that narrative, saying the firm has spent years advocating for clear crypto legislation. According to Armstrong, the company simply raised concerns about specific sections of the draft proposal rather than opposing the bill entirely.
He emphasized that the goal remains to reach a framework that benefits all parties involved in the digital asset ecosystem.
Stablecoin Rewards Are the Biggest Dispute
The main point of contention between banks and crypto firms revolves around stablecoin rewards. Banking groups want lawmakers to close what they view as a loophole left by the GENIUS Act, arguing that companies like Coinbase should not be allowed to offer rewards or yields to consumers holding stablecoins.
Crypto companies, however, say such restrictions would harm innovation and limit consumer benefits. Many firms want stablecoin rewards to remain available, especially within decentralized finance applications where users can earn yield through blockchain-based protocols.
The disagreement has stalled progress in the Senate, though another round of talks between industry representatives and banking groups is reportedly scheduled.
Lawmakers Face a Deadline to Reach Agreement
Negotiators have until the end of the month to resolve the remaining issues. Washington officials previously set a late-February deadline to finalize discussions around the market structure bill.
If the two sides can reach a compromise, the CLARITY Act could become one of the most significant crypto regulatory frameworks introduced in the United States.
Clear rules defining how digital assets are regulated and which agencies oversee them have long been a priority for the industry.
Crypto Markets Remain Rangebound During Negotiations
While policymakers continue negotiations, crypto markets have remained largely rangebound. Bitcoin slipped about 1.1% over the past 24 hours, trading near $66,900 following signals from the Federal Reserve that interest rate hikes remain possible if inflation stays elevated.
Altcoins experienced slightly larger declines. Solana dropped more than 4%, while Ethereum slipped below $2,000 to trade around $1,975.
Despite the market slowdown, Coinbase shares saw a modest rebound in overnight trading after falling earlier in the session. Retail sentiment around the stock remained strongly bullish on trading platforms.
Many investors believe a breakthrough in CLARITY Act negotiations could provide a catalyst for the broader crypto market.
