CLARITY Act Vote Looms as Crypto Regulation Progress Remains Uncertain

Crypto regulation in the US may not rest entirely on the passage of the CLARITY Act, according to Coinbase CEO Brian Armstrong.

The Senate is set to hold a procedural vote on September 15 to advance the legislation, which aims to establish a federal market structure for digital assets and clarify definitions for crypto assets. However, even if the bill stalls, Armstrong believes that regulatory progress can still be made through rulemaking by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).

The CLARITY Act is facing a 60-vote test in the Senate, with Republicans holding 53 seats. Despite an aggressive lobbying campaign from both crypto and banking industries, the bill's prospects are uncertain.

Armstrong notes that regulatory progress does not depend on one vote or legislation. He believes that agencies can use their existing authority to specify how existing statutes apply to digital assets through rulemaking.