Coinbase’s Legislative Reversal Sparks Industry-Wide Ripple Effect

In a significant development for cryptocurrency regulation, Ripple CEO Brad Garlinghouse has reaffirmed his strong support for the Clarity Act despite recent legislative setbacks triggered by Coinbase CEO Brian Armstrong's unexpected withdrawal of support. The bill, which had been progressing through the Senate, now faces delays as industry leaders navigate conflicting positions on regulatory frameworks. Garlinghouse's persistent advocacy for 'clarity over chaos' highlights the ongoing tension between cryptocurrency enterprises and regulatory bodies, with Coinbase's strategic reversal creating ripple effects throughout the legislative process. This situation underscores the complex dynamics between major crypto exchanges and regulatory evolution, particularly as companies like Coinbase navigate their relationships with both lawmakers and the broader digital asset ecosystem. The current legislative stalemate reflects deeper divisions within the industry regarding optimal regulatory approaches, with Garlinghouse positioning Ripple as a consistent voice for transparent frameworks while Coinbase's shifting stance introduces new uncertainties. As of early 2026, this regulatory tug-of-war continues to shape the operational landscape for cryptocurrency exchanges, with implications for market stability, investor protection, and institutional adoption across the digital finance sector.

Ripple CEO Backs Clarity Act Amid Legislative Delays

Brad Garlinghouse, CEO of Ripple, has doubled down on his endorsement of the Clarity Act despite recent setbacks in the Senate. The bill's progress stalled after Coinbase CEO Brian Armstrong withdrew support, creating unexpected delays.

Garlinghouse emphasized the need for regulatory clarity in the crypto sector, stating, 'Clarity is better than chaos.' His remarks underscore the industry's push for coherent legislation, even as debates continue over the bill's imperfections.

Galaxy CEO Novogratz Urges Progress on Crypto Bill Despite Coinbase's Withdrawal

Galaxy Digital CEO Michael Novogratz is pushing lawmakers to advance cryptocurrency legislation, arguing that perfection shouldn't stall progress. His stance comes as Coinbase withdraws support over concerns about DeFi restrictions and stablecoin provisions in the latest draft.

The proposed bill could jeopardize several Coinbase product lines, prompting the exchange's opposition. Novogratz counters that immediate action is crucial for industry growth, suggesting flaws can be addressed later. "We got to get this bill passed so we can MOVE on," he stated on CNBC, emphasizing the need for regulatory clarity.

The Senate Banking Committee has postponed its crypto hearing following Coinbase's withdrawal of support. This development highlights the growing tension between crypto firms and regulators as they negotiate the framework for digital asset markets.