Brian Armstrong, CEO of Coinbase, on April 10 publicly supported the call for the earliest possible adoption of the Clarity Act – an act that will finally dot the i’s on the regulation of the cryptocurrency market in the US.
The impetus was an opinion piece by Treasury Secretary Scott Bessent in the Wall Street Journal, in which he directly called on Congress to act. Armstrong didn’t wait long to respond.
Coinbase CEO’s Change of Tone or Position?
We agree. Thank you to Scott Bessent for these words. It’s time to pass the Clarity Act. I am grateful for all the bipartisan work of senators and staff over the last few months
– wrote the CEO of Coinbase.
This is an interesting turn, because until recently Coinbase demonstratively refused to support earlier versions of this law. The main point of contention? Regulations regarding stablecoins, specifically the issue of the so-called yields, i.e. the possibility of generating interest on these assets. A hot topic like Bitcoin in 2017.
However, signs of change have been emerging for some time. Paul Grewal, Chief Legal Officer of Coinbase, recently admitted that he is “very close” to reaching an agreement on this matter. Armstrong’s comments appear to confirm that closed-door negotiations are moving in the right direction. However, Coinbase has not yet issued any formal statement about the change in policy, so for now these are signals, not declarations.
Washington wants to act, but can it?
But Washington’s enthusiasm has its limits. TD Cowen analysts warn directly: the latest findings of the White House regarding stablecoins are unlikely to calm political divisions and may further complicate pushing crypto-legislation through Congress.
The road to passage of the Clarity Act is still paved with uncertainty. Armstrong can push all he wants, but Congress holds the ball. And as is often the case in American politics, the path from wanting to doing something often leads to several consecutive terms.
