At the beginning of 2026, the U.S. cryptocurrency industry was supposed to welcome a historic moment — the (Digital Asset Market Structure Clarity Act, abbreviated as #CLARITY Act) promoted by Congress was about to enter a critical stage.

However, an unexpected 'betrayal' caused everything to take a turn for the worse. From the evening of January 14, CEO Brian Armstrong publicly withdrew support, and by January 17, the White House hinted at possibly completely abandoning the bill. This game has pushed the entire cryptocurrency market into the abyss of uncertainty.

🤔 What is the bill? Why is it so important?

The CLARITY Act (corresponding to House Bill H.R.3633) is a nearly 300-page comprehensive legislation aimed at establishing a clear regulatory framework for US crypto assets.

Main content includes:

- Clear classification of digital assets: Distinguishing 'securities' (SEC jurisdiction) from 'commodities' (CFTC jurisdiction), ending the long-term regulatory gray area.

- Regulate stablecoins, DeFi, and tokenized assets (such as tokenized stocks and bonds).

- Establish issuance, disclosure, and investor protection rules while attempting to balance innovation and financial stability.

The bill went through months of closed-door negotiations, originally scheduled for revision and voting by the Senate Banking Committee on January 15, and is seen as a manifestation of the Trump administration's 'pro-crypto' commitment.

The industry was once optimistic: Clear regulation was expected to attract institutional funds, pushing Bitcoin to higher price levels, mainstreaming stablecoins, and allowing DeFi to operate legally.

Turning point: Coinbase's 'last-minute withdrawal'

On the evening of January 14, Brian Armstrong posted on X stating: 'After reviewing the Senate Banking Committee draft over the past 48 hours, Coinbase cannot support the current version.'

🌟He listed three major fatal issues:

- Essentially bans tokenized equities, hindering the on-chain representation of real-world assets (RWA).

- The DeFi terms are too strict, potentially granting the government unlimited access to users' financial data, sacrificing privacy.

- The stablecoin yield mechanism is severely restricted, prohibiting crypto companies from paying interest to users (only 'rewards' are allowed), directly threatening Coinbase's USDC business (which contributed $355 million in revenue in Q3 2025).

Result? The Senate Banking Committee urgently canceled the revisions, indefinitely postponing them. Senate Banking Committee Chairman Tim Scott (R-SC) called it a 'normal legislative process,' but the industry views it as a major setback.

❗️The White House's tough response: This is 'Trump's bill, not Brian's'‼️

The White House quickly countered. According to insiders, the Trump administration views Coinbase's actions as a 'rug pull' (a sudden withdrawal of investment), not just against the government, but against the entire industry. The core controversy centers on stablecoin yields: traditional banking lobby groups strongly oppose crypto companies paying high yields (concerned about funds flowing out of bank deposits), hoping the bill will protect their profits. A White House source stated: 'If Coinbase does not return to the negotiating table and propose a yield agreement that meets the banks' needs, the White House will completely withdraw support.'

The White House emphasized: 'This is President Trump's bill, not Brian Armstrong's.' They believe that no single company can hijack legislation, and other players like Ripple Labs still support the current version. Coinbase is accused of 'isolating itself'; its influence is significant (with a market cap of nearly $70 billion and having spent $130 million supporting pro-crypto lawmakers), but it has also angered Wall Street and the government.

✍️Market instant reaction and potential impact

In the short term, uncertainty dominates:

- Bitcoin price fluctuates in the range of $95,000-96,800, with the largest capital outflow from the US spot BTC ETF this week, and institutions turning defensive.

- Coinbase stock ($COIN) faces pressure at Monday's opening.

- Overall crypto market value is under pressure, and volatility is rising. Prediction markets like Polymarket show the probability of BTC reaching $100K in January 2026 has dropped from 70% to around 60%.

🔆Long-term double-edged sword:

- Optimistic scenario: If Coinbase compromises (or is forced by pressure), the bill may pass before the midterms, providing a clear framework. Institutional entry accelerates, stablecoins/DeFi become legalized, mainstream coins like BTC/ETH benefit, and the RWA sector explodes.

- Pessimistic scenario: The White House truly withdraws support, and the bill stalls. The US continues 'enforcement-style regulation' (SEC-led lawsuits), hindering innovation.

This conflict is essentially a game between crypto-native enterprises (represented by Coinbase) and traditional banks.

Armstrong publicly accuses banks of 'trying to stifle competition and protect profits', while banks fear that crypto's high yields will siphon off deposits. The Trump administration is caught in the middle: wanting to fulfill its 'pro-crypto' promise while unwilling to offend Wall Street.

🔅What does this mean for us❓

1. Short-term strategy: Beware of volatility, focus on BTC's support level at $90,000. Next week's negotiation dynamics are key — if the markup restarts (potentially delayed until January 27), DeFi and RWA-related currencies may rebound.

2. Long-term perspective: Clear regulation remains the biggest benefit for the industry. Regardless of the outcome, this crisis highlights that crypto cannot rely on a single player or government 'grace'. Diversifying assets and focusing on global trends (such as progress in Singapore and the EU) is the way forward.

3. Personal opinion: Support Coinbase's firm stance. Regulation should not only serve banks but should protect innovation and user privacy. Otherwise, the US will lose the Web3 race.

The crypto market has never moved in a straight line but is filled with dramatic seesaw battles.😈

The recent CLARITY Act controversy is just the latest chapter in a larger story.

Stay tuned, the future of Web3 ultimately depends on who can laugh last in the game...