Coinbase CEO Warns: The Clarity Act Is Rapidly Gaining Momentum

(MENAFN- Crypto Breaking) Crypto Legislation Gains Momentum in the US Amid Bipartisan Support

Coinbase CEO Brian Armstrong expressed optimism about the chances of passing critical legislation to foster the growth of the cryptocurrency industry in the United States. Following recent meetings with bipartisan lawmakers, Armstrong noted strong support for the Digital Asset Market Clarity Act, a bill designed to clarify the regulatory landscape for digital assets, including non-stablecoin tokens like tokenized stocks.

The legislation aims to delineate the roles of agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), ensuring clear jurisdictional boundaries. Armstrong emphasized that such clarity is essential for fostering innovation while safeguarding consumers, stating,“This is how we ensure the crypto industry can thrive here in America, preventing regulatory overreach like that seen from officials such as Gary Gensler.”

He further shared that lawmakers from across the aisle are eager to see the bill pass, with draft revisions still being exchanged before it moves to industry consultation for feedback.

Senator Cynthia Lummis has predicted that the bill could reach the president's desk before the year's end, signaling substantial progress. Industry representatives from Ripple , Kraken , Circle , and blockchain-focused venture capital firms such as a16z, Paradigm, and Multicoin Capital have been actively involved in discussions, underscoring the broad support across different sectors of the crypto community.

Prioritizing Builders in Crypto Regulation

Kraken CEO Arjun Sethi highlighted the importance of protecting crypto innovators, emphasizing that regulatory efforts should support the development of protocols, blockchain projects, and tokenized assets.“The real fight is bigger: protecting the right to build and ensuring incentives stay with the builders, not just existing giants,” Sethi remarked during recent discussions.

Additionally, Armstrong noted that lawmakers are unlikely to pass measures banning interest on stablecoins, which some banking groups have opposed. These groups previously attempted to categorize yield-bearing stablecoins as threats to the traditional banking model, which relies on high-interest savings products to fund loans.

Bitcoin Reserve and Broader Market Developments

Attention also turned to the proposed Bitcoin reserve bill, which has gained momentum on Capitol Hill. Recent discussions included 18 leading figures in the Bitcoin space, including Strategy chairman Michael Saylor, exploring how the US government could establish a strategic Bitcoin reserve through budget-neutral strategies, such as leveraging Treasury gold certificates or tariff revenues.

The week's activities signal a pivotal shift toward comprehensive crypto regulation, with the potential to solidify the US as a leader in blockchain innovation, NFTs, and broader DeFi markets. As the legislative efforts advance, industry leaders remain optimistic about shaping a clearer and more supportive environment for the growth of cryptocurrency and digital assets in the United States.

Crypto Investing Risk Warning
Crypto assets are highly volatile. Your capital is at risk. Don't invest unless you're prepared to lose all the money you invest.

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