‘Incumbents’ Are Trying to Kill Crypto Competition

The Coinbase CEO argues that clearer rules could allow crypto firms to compete more directly with established financial institutions.

Coinbase CEO Brian Armstrong has accused “entrenched incumbents” of lobbying against the CLARITY Act, arguing that established financial players are trying to stop crypto companies from competing in US financial services.

His comments frame the fight over the bill as a contest between traditional firms protecting their position and crypto businesses seeking clearer rules.

Armstrong Puts Competition at Center of CLARITY Fight

Armstrong said the Trump administration came to power after millions of Americans felt “disenfranchised” by the previous administration’s approach to crypto.

He pointed to Donald Trump’s 2024 campaign promise to remove former SEC Chair Gary Gensler, recalling the reaction when Trump said at a Bitcoin conference that he would fire Gensler “on day one.”

He then ran through what he sees as progress since Trump took office: an executive order calling for clearer crypto rules, the appointment of SEC Chair Paul Atkins and CFTC Chair Mike Selig, and passage of the GENIUS Act for stablecoins. The CLARITY Act, Armstrong said, is the next piece.

“Make no mistake, there are people out there actively fighting against this,” Armstrong said. “There are entrenched incumbents who don’t want competition from crypto companies that would provide better financial services.”

He went further, alleging that some of those firms are “actively lobbying against it, trying to kill it.” The Coinbase chief also singled out Senator Elizabeth Warren, saying she is among those seeking to stop the legislation. His argument comes as the bill approaches a September 15 Senate vote on a motion to proceed.

As CryptoPotato reported previously, Armstrong had earlier said on August 21 that regulatory clarity was coming either through Congress or through action by the SEC and CFTC. He pointed to September 15 and 16 as possible dates for that development.

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The Senate needs 60 votes for cloture, while Republicans hold 53 seats. That means if all of them support the measure, it would still leave them needing at least seven additional votes from Democrats or independents.

Furthermore, the bill still faces disputes over ethics rules, anti-money laundering provisions, and whether crypto companies can offer rewards on customer stablecoin holdings.

Banks Remain a Point of Tension

The banking industry’s concerns over stablecoin rewards sit close to Armstrong’s competition argument. The provision has drawn resistance from traditional lenders, who say such products could pull deposits away from banks.

That dispute helps explain why the CLARITY debate is about more than deciding which regulator handles crypto. The legislation would establish federal rules for digital assets, including how tokens are classified and where SEC and CFTC responsibilities begin and end.

With all that going on, Armstrong’s message is direct: the bill should pass because consumers and crypto firms need clearer rules, while established financial companies should not be able to block competitors through lobbying.

“It’s time to get the Clarity Act, which will protect consumers, over the finish line,” he wrote on X. “There’s something in it for everyone: banks, law enforcement, crypto companies, and most importantly the American people.”