Coinbase CEO Brian Armstrong Says Banks Got 'A Lot Of What They Asked For' In CLARITY Act Compromise

• Armstrong said banks "got really a lot of what they asked for" in the CLARITY Act compromise, including a ban on rewards on idle stablecoin balances.
• The bill cleared the Senate Banking Committee 15-9 and awaits a Senate floor vote, splitting SEC and CFTC oversight of digital assets.
• Responding to JPMorgan's Jamie Dimon calling him "full of shit," Armstrong said he has "a lot of respect" for Dimon and called the feud a distraction.

Coinbase (COIN) CEO Brian Armstrong said on Friday that the banking industry got most of what it wanted in the compromise version of the Digital Asset Market Clarity Act (CLARITY Act) and urged lawmakers to pass the crypto market structure bill, which awaits a Senate floor vote.

On a Politico podcast, Armstrong said the text negotiated by the Senate Banking Committee gives banks the concessions they were seeking, including a ban on rewards paid on idle stablecoin balances, additional rulemaking, anti-evasion language, and marketing restrictions. "I think at this point the banks got really a lot of what they asked for," he said, adding that a compromise "means that both sides are going to leave feeling a bit unhappy."

The bill advanced out of the Senate Banking Committee on a bipartisan vote of 15-9 in May and now moves to the Senate floor for a final test. It would create a regulatory framework for digital assets, splitting oversight between the SEC and CFTC, following last year’s GENIUS Act for stablecoins.

COIN’s stock closed over 7% on Friday. On Stocktwits, retail sentiment around COIN remained in the ‘bearish’ zone, while chatter stayed at ‘normal’ levels over the past day.

Coinbase CEO Takes The High Road 

Armstrong also talked about his public spat with JPMorgan Chase CEO Jamie Dimon, who recently called him "full of sh#t" for his lobbying. "I've got a lot of respect for Jamie Dimon, so it was kind of sad to hear that,” Armstrong said, characterizing the dispute as a distraction from the goal of clear rules. He said the fight "isn't really about Jamie Dimon or me."

Armstrong said Coinbase conceded on the issue of idle balances, a key dispute over stablecoin yields, during negotiations brokered by the committee and the White House. He said banks’ fears of deposit flight were misplaced, pointing to bank deposits and stablecoins growing. He dismissed the notion that crypto companies want less regulation, saying Coinbase operates as an OCC trust with 100% reserves and does not do fractional-reserve lending that would require a bank license.

On Ethics Provision Of CLARITY Act

Armstrong said he hasn't seen President Donald Trump in three to four months and declined to comment on the ethics provision sought by Democrats that would prohibit government officials from profiting from crypto while in office, saying it was "above my pay grade." He recognized the view that Trump’s crypto-friendly position is rooted in self-interest, but said that crypto remains “the most bipartisan issue right now in DC.”

Armstrong also highlighted the political muscle and grassroots support in the crypto industry, pointing to the roughly 3 million Americans who signed up to support pro-crypto candidates and the Fairshake super Political Action Committee (PAC), which he said is independent of Coinbase. 

Read also: Michael Saylor Fires Back At Jim Cramer’s ‘Murder’ Jab While Strategy Sits At $12 Billion Paper Loss

For updates and corrections, email newsroom[at]stocktwits[dot]com