Coinbase opposes crypto bill to stifle competitor Securitize, says Citron

Coinbase's decision to withdraw its support for the crypto market structure bill known as the CLARITY Act is a move to stifle competition from security token platform Securitize, according to market research firm Citron Research. Citron stated that Coinbase CEO Brian Armstrong recently expressed concerns about Securitize in a CNBC interview. The research firm highlighted Armstrong's dissatisfaction with regulations on tokenized stocks while simultaneously seeking to protect Coinbase's stablecoin revenue model. Citron argued this reveals a contradictory stance, where Coinbase wants the regulatory clarity the bill could provide but aims to avoid the potential competition it would create. The firm concluded that Coinbase's opposition is not driven by concerns that the bill would harm the crypto industry, but rather by an effort to prevent legislation that could be more favorable to Securitize.