Coinbase Global Inc. (NASDAQ:COIN) CEO Brian Armstrong backed legislative advancement of the Clarity Act following a reported compromise on the contentious issue of stablecoin yields.
Armstrong Gives Thumbs-Up
Armstrong quoted the X post of Faryar Shirzad, Coinbase’s Chief Policy Officer, about the release of “final rewards language” in the CLARITY Act, replying, “Mark it up.”
Shirzad drew his comments from a report by Punchbowl News, which had access to the compromise text. The report stated that cryptocurrency firms would be banned from offering rewards that are “economically or functionally equivalent” to deposit interest.
The new text, finalized by Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), directs regulators to propose “a new series of stablecoin regulations,”including the development of a new stablecoin disclosure regime and a list of permissible reward activities.
Armstrong’s comment carried weight, given that it was Coinbase that withdrew its support for the key cryptocurrency legislation in January over the stablecoin yield issue. As a result, the markup was postponed indefinitely.
“In the end, the banks were able to get more restrictions on rewards, but we protected what matters – the ability for Americans to earn rewards, based on real usage of cryptocurrency platforms and networks,” Shirzad said.
Crypto Industry Reacts
Jeremy Allaire, CEO of Circle Internet Group Inc. (NYSE:CRCL), gave a thumbs-up to the progress, adding, “The entire digital asset industry, which now very much includes banks of all sizes and stripes, will benefit from advancing U.S. leadership in this area.”
Ji Kim, CEO of Crypto Council for Innovation, disagreed with the updated text but urged the Senate Banking Committee to promptly mark up the CLARITY Act to establish a comprehensive U.S. digital asset market structure.
There has been no official confirmation from Tillis or Alsobrooks so far. Benzinga contacted their offices for a response.
Jamie Dimon, CEO of JPMorgan Chase & Co. (NYSE:JPM), equated rewards to “interest” earlier in March, insisting that any cryptocurrency firm offering these services should fall under banking regulations.
Price Action: Coinbase shares closed 1.85% higher at $191.25 during Friday’s regular trading session, according to Benzinga Pro.
COIN stock excelled in short-term price gains but underperformed in medium- and long-term horizons, paired with a very low Momentum score, according to Benzinga’s Edge Stock Rankings.
Photo courtesy: Shutterstock By Thrive Studios ID
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