Coinbase Spotlights Davos Momentum Toward Tokenization and CLARITY Act

Tokenization and U.S. crypto rules moved to the center of global finance as Coinbase CEO Brian Armstrong said Davos talks showed regulators, banks, and corporations aligning around digital assets and the CLARITY Act.

Tokenization, Crypto Regulation Take Center Stage at Davos

Coinbase CEO Brian Armstrong shared on social media platform X on Jan. 24 reflections from the World Economic Forum in Davos, focusing on global discussions around tokenization, U.S. crypto legislation, and the CLARITY Act as policymakers, executives, and financial institutions weighed the future of digital assets.

“Just wrapped up our week in Davos,” he wrote. “Davos is a unique place – world leaders and CEOs (and lots of crypto companies!) all come together in a small mountain town in Switzerland for a few days.” Armstrong described the gathering as an efficient setting for concentrated engagement, adding that the primary objective during the week was advancing crypto adoption through direct conversations with decision-makers. He emphasized that tokenization dominated discussions across industries, explaining:

“Everyone was talking about tokenization. On the surface it seems like a buzzword, but it’s an important trend.”

Armstrong elaborated that tokenization began with stablecoins and is now extending across asset classes, with Fortune 500 companies increasingly participating. He highlighted its potential to broaden access to investment opportunities, pointing to billions of adults globally who remain excluded from traditional financial markets, and projected tangible progress in the coming years.

Despite the constructive tone in Switzerland, the legislative process back in Washington has hit a major roadblock. The drama erupted just days before Davos when Coinbase officially withdrew its support for the current Senate version of the CLARITY Act. The move was a direct response to a late-hour amendment, heavily pushed by the banking lobby, that would effectively ban crypto exchanges from offering yields or rewards on stablecoins.

Read more: Coinbase Disputes White House Hostility Claims, Calls Crypto Bill Talks ‘Super Constructive’

A central theme emerging from Davos involved regulatory clarity in the United States, particularly ongoing work around crypto market structure and the CLARITY Act. Armstrong described sustained engagement with policymakers and industry leaders, stating:

“We’ve had countless meetings with key players in DC and Davos over the last two weeks.”

He detailed that negotiations have involved active debate aimed at producing legislation that balances innovation with consumer protection, while also preserving U.S. competitiveness. According to Armstrong, conversations with banking executives revealed a notable shift in sentiment, with many large institutions now viewing crypto as a strategic priority rather than a peripheral experiment. He characterized the broader political environment by noting: “Trump and the current administration are the most crypto-forward government in the world.” Armstrong linked clear market structure rules to global competition, particularly as other countries advance stablecoin initiatives, and framed the CLARITY Act as a foundational step toward reinforcing the United States’ position as a leading crypto hub.

FAQ ⏰

• Why was tokenization a major topic at Davos?

Brian Armstrong said tokenization dominated discussions as it expands beyond stablecoins into multiple asset classes.

• What is the CLARITY Act in crypto regulation?

The CLARITY Act aims to establish clear U.S. crypto market structure rules that balance innovation and consumer protection.

• How do banks now view crypto, according to Armstrong?

Armstrong said many large banking institutions now see crypto as a strategic priority.

• Why does U.S. crypto legislation matter globally?

Clear U.S. rules are seen as critical to competing with other countries advancing stablecoin initiatives.