CLARITY Act Fails, Crypto Rules Still Coming: Coinbase CEO

Coinbase CEO Brian Armstrong says that the upcoming vote on the CLARITY Act in the Senate will not be the sole determinant of federal regulations for the US crypto industry. According to him, even if the bill does not pass, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will move forward with their respective rulemaking.

Armstrong points out that either scenario could provide clarity, noting that legislation could allow Congress to write rules or, should legislation fail, the SEC and CFTC are poised to write rules within days. He emphasizes that agency rules can give operational guidance without superseding laws passed by Congress.

The CLARITY Act aims to establish a federal market structure for cryptocurrency, with the SEC and CFTC sharing oversight for regulating digital assets and financial products. Assets deemed securities would remain under the authority of the SEC, while decentralized digital commodities like Bitcoin are under the CFTC.

Armstrong believes that the bipartisan compromises made on previous drafts address both sides' concerns, but open issues include ethics standards on elected officials, stablecoin compensation, and decentralized finance developer protections. He also highlights the growing importance of agentic finance, which Coinbase is building infrastructure around through its Base network and x402 payment protocol.