Why Ripple Backs the CLARITY Act While Coinbase Walked Away
The CLARITY Act's Senate amendments caused a split, with Ripple supporting it for regulatory certainty and Coinbase opposing it due to expanded SEC power and stablecoin restrictions.Summary
The US crypto market structure bill, the CLARITY Act, has created a division within the industry following Senate amendments that significantly expanded the SEC's power, tightened stablecoin rules, and increased DeFi oversight.
Coinbase withdrew its support, arguing the Senate draft weakens the CFTC's role, increases SEC discretion, restricts stablecoin yield—a key part of its consumer model—and could limit innovation in tokenized equities and DeFi.
Conversely, Ripple publicly backs the bill because its business model focuses on institutional infrastructure and compliance. For Ripple, regulatory clarity, even if strict, is preferable to uncertainty, as it facilitates engagement with XRP and its stablecoin, RLUSD. Furthermore, the Senate's treatment of stablecoins as payment instruments aligns with Ripple's strategy, while tighter DeFi compliance creates a 'regulatory moat' that benefits established, compliant firms over those focused on open retail access.
(Source：BeInCrypto)