Coinbase CEO Brian Armstrong has criticized the CLARITY market regulation bill's proposal to ban stablecoin rewards, arguing it would inadvertently benefit Coinbase by allowing the exchange to retain rewards currently given to USDC holders. Armstrong's comments have sparked controversy on social media, with critics labeling his stance as disingenuous, suggesting that rewards attract customers and increase trading volume. Armstrong acknowledged that while the rewards cost companies, they drive more trading activity, benefiting exchanges through increased fees. He emphasized that while a ban might boost short-term profits, it would be better for customers and the U.S. to maintain competitive, regulated stablecoins. Despite ongoing discussions between banks and the crypto industry, no agreement has been reached, leaving the bill's future uncertain.