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The US crypto market structure bill, known as the CLARITY Act, has exposed a growing divide in the crypto industry. While Coinbase withdrew its support after recent Senate amendments, Ripple publicly supported the bill and urged lawmakers to move forward.
This difference highlights how the same regulatory framework can produce very different winners and losers, depending on the business model and strategic direction of the company.
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What is the law of clarity trying to do?
The CLARITY Act has a purpose To settle a long-standing dispute in the regulation of cryptocurrency in the United States: who should oversee the cryptocurrency markets.
In essence, the bill attempts to draw clearer lines between the views of the SEC and the Commodity Trading Commission.
This decision impacts how tokens are traded, how exchanges operate, how stablecoins are structured, and how… It fits decentralized finance in US law.
Because the Senate amendments changed the policy
The House of Representatives passed an earlier version of the bill that was supported by several cryptocurrency companies. But the Senate Banking Committee provided a complete rewrite, not minor amendments.
The Senate bill expands the SEC’s influence, adds token disclosure requirements, restricts stablecoin rewards, and brings parts of DeFi closer to bank-style compliance and oversight.
These changes have reshaped the incentives for major cryptocurrency companies.
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Why Coinbase opposes the Senate version
Coinbase argues That the Senate amendments cross several red lines. The company says the bill weakens the role of the CFTC, expands the powers of the SEC, and creates uncertainty about token listings.
More importantly, Coinbase opposes the provisions Stablecoin rewards are credited. Stablecoin returns are a key part of Coinbase’s consumer-oriented model and a competitive tool against traditional banks.
Coinbase also warned that language related to tokenized stocks and decentralized finance may limit innovation and increase regulatory risks for platforms operating at scale.
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Why is Ripple supporting the project anyway?
Ripple’s position is shaped by a completely different business model. In the past year, Ripple has changed significantly towards institutional infrastructure, regulated payment lines, and the expansion of the first compliance.
For Ripple, regulatory clarity – even if it is tight – is often better than uncertainty. The clear framework makes it easy for banks, payment companies and institutions to interact with XRP and RippleNet and Ripple’s stablecoin RLUSD.
Stablecoin rules benefit Ripple more than Coinbase
The Senate bill treats stablecoins primarily as payment instruments, not as income-generating products. This approach is closely aligned with Ripple’s strategy for RLUSD, which focuses on settlement and payments rather than consumer returns.
For Coinbase, the same rules reduce differentiation and return the advantage to banks. For Ripple, it normalizes stablecoins as regulated infrastructure and raises barriers to competitors based on hash incentives.
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Decentralized finance and compliance create a regulatory moat
The Senate amendments also expand compliance expectations related to decentralized finance and on-chain activities. This creates higher costs and legal complexities for companies closely related to open access to DeFi and retail trading.
Ripple’s exposure to decentralized finance is limited. Its focus on partnerships between companies means that tighter rules may actually reduce competition and favor companies that already operate within regulatory frameworks.
The issue of SEC vs. CFTC is less important for Ripple
Coinbase has always pushed for a CFTC-led model, which would reduce securities law risks in token exchanges and listings. After settling years of litigation with the Securities Commission, Ripple is prioritizing the prediction about the identity of the regulators.
As long as the rules are clear and stable, Ripple can operate in a framework influenced by the SEC. Coinbase, which lists and supports a wide range of tokens, faces a much greater disadvantage due to the SEC’s expanded authority.
The act of CLARITY is no longer discussed Limited to digital currencies versus regulators only. It is increasingly becoming a cross between digital currencies and cryptocurrencies, as companies support the version of regulation that best suits their economic interests.
Whether the project passes or stalls, this split reveals a deeper shift in the industry—and signals it “Regulatory clarity” does not mean the same thing to everyone.
