Citron Research has accused Coinbase CEO Brian Armstrong of opposing the Senate’s CLARITY Act to shield Coinbase’s stablecoin yield business from increased competition, as debate over the bill heats up in Washington and across the crypto sector.
In a post on X, Citron claimed Armstrong’s recent CNBC remarks suggest concern over competition from tokenized securities firm Securitize, which already holds the regulatory licenses required to operate in that space. According to Citron, Coinbase wants regulatory clarity without allowing new rivals to benefit, arguing that a revised version of the bill could favor competitors more than Coinbase.
Coinbase formally pulled its support for the CLARITY Act on January 14. Armstrong cited several concerns, including what he described as an effective ban on tokenized equities, greater government access to DeFi user data, a shift in oversight power from the CFTC to the SEC, and provisions that could eliminate stablecoin rewards. He stated the company would “rather have no bill than a bad bill,” while noting that amendments could still be possible.
Not everyone agrees with Citron’s criticism. Crypto commentator George Tung (CryptosRUs) defended Armstrong, arguing that traditional banks are pushing back against stablecoins due to competitive pressure. He added that clear regulations should allow both banks and crypto firms to compete fairly, especially given the yield gap between savings accounts and Treasury-backed stablecoins.
