Ripple CEO Breaks Silence on Coinbase's Sudden Withdrawal from Key Bill

Table of Contents

TLDR

Ripple CEO Brad Garlinghouse expressed surprise over Coinbase’s strong rejection of the Digital Asset Market CLARITY Act.
Garlinghouse acknowledged the concerns raised by Coinbase CEO Brian Armstrong regarding tokenized stocks and stablecoin rewards.
Despite Coinbase’s exit, Garlinghouse emphasized that Ripple and other key players are still engaging constructively with the bill.
Garlinghouse shared optimism about recent pro-crypto legal developments, including a reduction in financial service fees.
The Ripple CEO praised Senator Tim Scott’s crypto regulation proposal as a step forward for the industry.

Ripple CEO Brad Garlinghouse addressed the ongoing tensions within the cryptocurrency industry during a panel at the CfC St. Moritz conference in Switzerland. The recent drama centers around the Digital Asset Market CLARITY Act, a bill aiming to define the roles of the SEC and CFTC. Garlinghouse reacted to Coinbase CEO Brian Armstrong’s surprise withdrawal of support for the bill, claiming it was “materially worse than the status quo.”

Coinbase Pulls Support for the Digital Asset Market CLARITY Act

The Digital Asset Market CLARITY Act was designed to provide clarity on cryptocurrency regulation in the U.S. However, it faced major opposition from Coinbase CEO Brian Armstrong. Hours before the Senate Banking Committee markup, Armstrong pulled his company’s backing, citing concerns about a “de facto ban” on tokenized stocks and limits on stablecoin rewards. Armstrong also voiced privacy concerns related to the bill.

Garlinghouse, speaking at the St. Moritz conference, expressed surprise at how strongly Coinbase rejected the proposal. He acknowledged that Armstrong raised “fair concerns” but maintained that other major players in the industry, including Ripple, Circle, Kraken, and a16z, were committed to engaging with the bill. “The rest of the industry is leaning in,” Garlinghouse stated, adding that they were focused on working through the issues constructively.

🚨Fresh from the #cfcstmoritz panel: Ripple CEO Brad Garlinghouse addresses Coinbase's withdrawal of support for the CLARITY Act.
"Brian Armstrong and the Coinbase team have raised, you know, fair concerns. I was surprised how vehemently they came out and said 'look we can't… pic.twitter.com/kIhlEgfna3

— CfC St. Moritz (@cfcstmoritz) January 15, 2026

Despite Coinbase’s exit from the conversation, Garlinghouse remains optimistic about the potential for a regulatory framework that could benefit the cryptocurrency industry. He stressed that Ripple is still committed to finding a workable solution to address concerns and achieve a balanced approach to regulation.

Ripple CEO Expresses Optimism on Pro-Crypto Legal Developments

Garlinghouse also shared his positive outlook on recent pro-crypto legal initiatives in the U.S., particularly highlighting a reduction in financial service fees. He referred to a Wall Street Journal article revealing that U.S. consumers paid 3.5% less in fees for financial services. The Ripple CEO suggested that this decline could be linked to the U.S. Administration’s supportive stance toward cryptocurrency.

In addition, Garlinghouse praised the crypto regulation framework proposed by Senator Tim Scott. He described the proposal as a “massive step forward” for the industry. Garlinghouse believes it would offer a “workable framework” for crypto while ensuring consumer protection.