Coinbase CEO Says CLARITY Act Vote Won’t Stop US Crypto Rules From Coming

Coinbase CEO Brian Armstrong believes the Senate’s Sept. 15 vote on the CLARITY Act alone may not be enough to provide clearer federal regulation for the U.S. crypto industry.

Even if lawmakers do not advance the bill, he expects the Securities and Exchange Commission and Commodity Futures Trading Commission to move forward with their respective rulemaking.

Armstrong told CNBC 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, giving companies focused on digital assets more clarity on how federal regulation of the industry could work.

And that distinction matters, because agency rules can give operational guidance without superseding laws passed by Congress.

If passed into law, the Digital Asset Market Clarity Act would establish a federal market‌ structure for cryptocurrency. The SEC and‌ CFTC would share oversight for regulating digital assets and financial products. 

Assets that are seen as securities would remain under the authority of the SEC, while decentralized digital commodities‌ like Bitcoin are under the CFTC. Exchanges, brokers and other market participants would also‌ face federal requirements.