The crypto industry's flagship regulation bill just hit turbulence. After Coinbase abruptly pulled support for the Clarity Act over stablecoin yield provisions, the White House scrambled to convene emergency talks between crypto firms and traditional banks on Monday. But the real drama unfolded in Davos, where Coinbase CEO Brian Armstrong allegedly sparked confrontations with Wall Street executives, culminating in JPMorgan's Jamie Dimon calling him "full of shit" during a coffee meeting with former UK Prime Minister Tony Blair.
Washington's crypto regulation effort just went off the rails, and it's playing out more like a billionaire reality show than policy debate. The Clarity Act, which was supposed to bring order to digital asset markets, is now stuck in limbo after Coinbase torched its own legislative baby.
The White House pulled crypto executives into emergency damage control on Monday. Policy directors from major crypto companies, trade groups, and traditional financial institutions gathered to hammer out a rescue plan for the market structure bill. Coinbase had abruptly yanked its support weeks earlier, citing concerns about how the legislation handles stablecoin yields, a key revenue driver for crypto platforms.
Cody Carbone of The Digital Chamber, a trade group representing the digital asset industry, said attendees managed to "tone down the political rhetoric" and agreed to aim for a compromise by late February. But the real story is who wasn't in that room - the CEOs stayed home, and that's probably for good reason.
Over in Davos during the World Economic Forum, Coinbase's Brian Armstrong apparently went on a warpath against traditional finance. The Wall Street Journal reported that Armstrong got into multiple confrontations with Wall Street CEOs after he'd for sabotaging the crypto bill.
