Regulators Gain Prominence as Clarity Act Stalls in Congress

Coinbase's Chief Policy Officer Faryar Shirzad says that the Clarity Act has stalled in Congress. He attributes this to a shift in policy pathway rather than legislative failure itself.

The 'Clarity' bill, a key U.S. cryptocurrency legislative initiative, failed to clear a cloture vote this week. According to Bitcoin Magazine, Shirzad pointed out that the bill's legislative process stalled due to the U.S. election calendar and major banks mounting a large-scale campaign worth about $200 million.

Congress' legislative momentum weakened as the Clarity bill fell into the latter part of the election cycle, Shirzad said. He suggested that future policy changes could move to the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and bank regulators. Shirzad also presented a view that the role of regulators could become more important under SEC Chairman Paul Atkins.

Coinbase did not view the legislative delay as a broader loss of momentum in cryptocurrency policy. Shirzad said there remains room to advance policy through regulators and international policy channels, presenting a 'three-pillar policy strategy' spanning legislation, regulation and international coordination.