The same person, the same bill, a completely different stance. On April 10, 2026, Coinbase CEO Brian Armstrong posted on X that the current version of the CLARITY Act (H.R. 3633) is "a strong bill" and urged Congress to pass it into law.
Less than three months earlier, Armstrong had torpedoed the legislative process by withdrawing support in two consecutive posts, forcing the Senate Banking Committee to postpone its markup. The flashpoint: whether stablecoin issuers could pay interest to holders.
The January split: stablecoin yield sank the bill
Traditional banks opposed any yield on stablecoins, fearing it would drain deposit interest. Coinbase and Stripe argued that banning yield would choke crypto finance innovation. The January version tilted toward banks, and Armstrong pulled the plug.
The committee's markup was shelved. Industry watchers said without Coinbase's backing, the bill's legitimacy in crypto circles would be near zero.
Tillis-Alsobrooks compromise: passive yield out, activity rewards in
Sens. Thom Tillis and Angela Alsobrooks brokered a revised version that bans passive yield—earned simply by holding stablecoins—but explicitly allows activity-based rewards such as trading rebates, payment incentives, transfer bonuses, and loyalty programs, all tied to actual user engagement.
Regulatory details would be jointly drafted by the SEC, CFTC, and Treasury within 12 months after enactment. Armstrong's endorsement came after this compromise landed. Coinbase's core business—transaction fee rebates and payment ecosystem rewards—remained intact, while banks' main worry about deposit substitutes was walled off.
The bill's broader aim: ending the SEC-CFTC turf war
The CLARITY Act is more than a stablecoin bill. Passed by the House on July 17, 2025, H.R. 3633 formally draws the regulatory boundary between the SEC and CFTC over digital assets, introducing "digital commodity" and "digital asset security" classifications so issuers know which regulator oversees them.
This is Congress's attempt to end the years-long regulatory standoff that has forced markets to rely on court rulings. The Senate Banking Committee targets a markup by end of April, and the Senate reconvened on April 13, signaling acceleration.
The risk remains in the wording. The passive-vs-active line on stablecoin yield won't be finalized for 12 more months. Whether the April markup proceeds smoothly—or gets snagged again on a single clause—will be the real test.