Coinbase's CEO Brian Armstrong predicts clearer regulations for the U.S. crypto industry, regardless of the upcoming vote on the CLARITY Act.
Brian Armstrong, the CEO of Coinbase, has expressed confidence that the U.S. cryptocurrency sector will soon see clearer regulations, irrespective of the upcoming Senate vote on the CLARITY Act. In an interview with CNBC, he indicated that the passage of the bill would provide a solid regulatory framework, while its failure would lead the SEC and CFTC to establish their own guidelines.
Prospects for Regulation
Armstrong stated, “One way or another, we will achieve regulatory clarity—whether it’s on September 15 or a day or two later.” A procedural vote on the CLARITY Act is set for September 15, which will influence the bill's progression but does not guarantee its final approval.
The Coinbase CEO mentioned that key concerns previously raised by the company have been addressed during discussions, which took into account the perspectives of both political parties, law enforcement, banks, and crypto firms.
Ongoing Challenges
However, disagreements persist, particularly regarding the ownership of digital assets by elected officials. Armstrong noted that while the White House has proposed ethical guidelines, Democrats are advocating for stricter measures, including asset divestment.
He also pointed out that some banks oppose the bill due to competitive pressures in the payments sector, citing Goldman Sachs, BNY Mellon, and Fidelity as proponents of the legislation. Banking associations are wary of potential deposit losses linked to stablecoins, while critics claim the bill's anti-money laundering provisions are inadequate.
As the vote approaches, lobbying efforts have intensified from both major parties in states represented by their senators. The crypto industry aims to advance the bill ahead of the midterm elections in November, with concerns that a shift in House control could hinder its passage. Earlier this year, Coinbase had withdrawn support for a prior version of the bill due to concerns over restrictions on tokenized stock transactions and stablecoin rewards.
