Clarity Act Stuck in Congress Despite Coinbase's Advocacy

Coinbase CEO Brian Armstrong is still advocating for the Clarity Act, which would change the way cryptocurrency regulation works in the US. The bill has been stuck in Congress due to a package of ethics rules aimed at government officials.

Armstrong believes that passing the Clarity Act this year is unlikely, with some estimates putting the odds at just 30%. However, if it does pass, it would be a major positive catalyst for the crypto market.

The legislation would classify digital assets like Ethereum (ETH), XRP (XRP), and Solana (SOL) as commodities rather than securities. This change in classification would give regulators more clarity on how to handle these assets.

Even if the Clarity Act doesn't pass this year, Armstrong believes that it's still a major step forward for the industry. He has been pushing for the bill and has had input into its crafting.