Coinbase CEO Brian Armstrong said the Senate’s failure to advance the CLARITY Act could reduce competition for the exchange, even though he believes the legislation would have benefited the broader crypto industry. The procedural September 15 vote failed 49-50, short of the 60 votes required to proceed. Armstrong said regulatory clarity could have brought major traditional financial institutions into crypto, but also created new rivals for Coinbase. He said four concerns Coinbase had raised about an earlier January draft were addressed in the latest Senate version: tokenized equities, penalties for decentralized finance (DeFi) developers, the Commodity Futures Trading Commission’s authority over spot markets, and stablecoin rewards. With the bill stalled, Armstrong said Coinbase could continue working with the Securities and Exchange Commission (SEC) and CFTC as they develop industry rules. He is treating the legislation as effectively dead unless lawmakers revive it, although seven Democratic senators have said the setback does not end efforts to advance crypto legislation. The debate also includes the GENIUS Act’s federal framework for payment stablecoins and their competitive relationship with banks, with Armstrong saying Coinbase is willing to work with banks rather than view them only as rivals.