Coinbase CEO Brian Armstrong says major banks back CLARITY Act, Senate vote set for September 15

The CLARITY Act has drawn public backing from leading financial institutions, signaling strong support from major players in the industry. Despite this momentum, the legislation continues to face opposition from certain quarters. Brian Armstrong, CEO of Coinbase, the largest US-based cryptocurrency exchange, addressed both the support and resistance in a recent interview.

Major institutions endorse the bill

Armstrong named Goldman Sachs, Citi, BNY Mellon, Fidelity, and BlackRock as key supporters of the CLARITY Act, stating these financial giants have openly endorsed the legislation. He described the bill as a positive development for banks that want to leverage blockchain technology to expand their services.

According to Armstrong, the majority of banks recognize the potential benefits the bill offers. He suggested that these institutions see new opportunities for business growth and innovation with the regulatory clarity the Act would provide for digital assets and blockchain integration.

Most banks support the bill because it gives them new tools to grow their business using blockchain, Armstrong said, but a small group still opposes it as they “don’t want competition from crypto companies.”

A minority pushes back

Armstrong emphasized that opposition comes from a minority of banks intent on protecting their current market position rather than consumer interests or concerns about systemic stability. He explained that these banks prefer to avoid direct competition with digital asset firms and resist potential changes that could require them to offer higher rates to customers.

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He referenced companies such as Ripple, a blockchain-based payments provider, which have encountered resistance from some banks when seeking a banking charter. Armstrong argued that this resistance centers on a desire to exclude competition rather than genuine regulatory or financial concerns.

Armstrong invoked the principles of free market competition, stating that such behavior should be evaluated accordingly. He predicted that the Senate would not support efforts to shield traditional banks from competition with crypto firms.

Armstrong expressed confidence that the Senate will not allow protectionism to block innovation, pointing to America’s tradition of encouraging competition.

Legislative progress and upcoming vote

The CLARITY Act passed the Senate Banking Committee in May and has since been awaiting a full Senate vote. Senate Majority Leader John Thune filed for cloture prior to the August recess, setting the stage for a procedural vote scheduled for September 15, when the Senate reconvenes.

To pass the cloture threshold, the bill requires at least 60 votes, making bipartisan support essential. Senator Tim Scott has publicly stated that he expects the Act to become law. Senator Cynthia Lummis has also highlighted support for the legislation from major Wall Street firms, countering claims of widespread opposition from the financial sector.

The outcome of the September 15 vote will determine whether the Senate moves the bill forward, potentially opening the doors for broader adoption of blockchain technology in the US banking system.

Mini dictionary: CLARITY Act, US legislation aiming to provide clear regulations for digital assets, facilitate blockchain integration by banks, and reduce legal uncertainty for both traditional and crypto businesses by defining regulatory guidelines for the industry.

Armstrong reiterated that the opposition represents a minority within the banking industry. He made it clear that most major financial institutions have already expressed support for regulatory clarity and technological advancement.

Market observers await the critical Senate vote as a key turning point for the future regulatory environment affecting both traditional banks and cryptocurrency companies.