Coinbase CEO blamed as Clarity Act fails in Senate

The Wall Street Journal reported Sunday that the collapse of the Clarity Act provoked an intense blame game between crypto leaders and legislators.

Blame was swiftly assigned after the digital assets bill was turned down by the Senate earlier this month. Some noted Democratic ethical worries regarding President Donald Trump’s connections to the crypto sector. Others argued that corporate chiefs blew their opportunity to lock in an agreement before matters like the Iran dispute, market surges and AI grabbed congressional attention.

Brian Armstrong, head of Coinbase, sat at the center of the conflict. The executive drove the sector’s effort for the regulatory structure. Per sources close to the matter, no one other than Trump held similar influence in the negotiations. Armstrong traveled to the capital 13 times from the 2024 election to the most recent vote, and his lobbying team held consistent weekly meetings with sector players about the language. WSJ described Armstrong’s behavior as “an extraordinary level of engagement.”

Sources suggested that Armstrong used, and abused, his leverage to halt parts of the legislation he opposed, thus delaying momentum.

Brad Garlinghouse, head of Ripple, a firm that backed the proposal, noted that January saw significant progress until a particular trade group undermined its own position.

Coinbase stated that Armstrong’s January retreat from the Clarity Act safeguarded the crypto sector’s long-term interests, citing several defective provisions in the draft he identified.

Faryar Shirzad, Coinbase’s chief policy officer, told the WSJ that the company regularly accepted compromises to preserve the coalition and advance the legislation.