Coinbase CEO Brian Armstrong said the Senate’s failure to advance the CLARITY Act could reduce competition for his exchange by delaying the entry of major Wall Street firms under clearer crypto rules. He nevertheless argued that the legislation would have benefited the broader industry. The September 15 procedural vote failed 49-50, below the 60 votes required to proceed, and was not a final vote on the bill. Armstrong said Coinbase’s four objections to an earlier January draft—covering tokenized equities, penalties for decentralized finance developers, the CFTC’s authority over spot markets, and stablecoin rewards—had been addressed in the latest Senate version. With the bill stalled and effectively dead unless revived, he said Coinbase could continue working with the SEC (U.S. securities regulator) and CFTC (U.S. commodities regulator). Seven Democratic senators have indicated that the setback does not end efforts to advance crypto legislation. The debate also includes stablecoin rewards and competition between crypto companies and traditional banks; the GENIUS Act established a federal framework for payment stablecoins, while Coinbase says it is willing to work with banks rather than treat them only as rivals.