Coinbase has stepped up its push for US cryptocurrency market rules as Senate lawmakers prepare for a crucial vote on the CLARITY Act this month.
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- Coinbase’s Faryar Shirzad said the CLARITY Act could become the largest US financial regulatory bill since the Dodd-Frank Act.
- The bill received approval from the Senate Banking Committee by a vote of 15 to 9 and now needs 60 votes in the Senate to advance.
- Senator Cynthia Lummis has warned that Congress may not get another serious chance to pass cryptocurrency legislation until 2030.
Sherzad said Morning Fox Business With Maria the Digital Asset Market Clarity Act could become the most important financial regulation bill since the Dodd-Frank Act. Coinbase’s chief policy officer argued that the bill would finally give digital asset companies clear rules in the United States.
He passed the legislation Senate Banking Committee on May 14 by a vote of 15 to 9. Democratic Senators Ruben Gallego of Arizona and Angela Alsobrooks of Maryland joined Republicans in supporting the measure. However, the bill still needs 60 votes in the Senate to advance to a vote.
Coinbase sees Senate path to crypto bill
In the interview, Shirzad said Republicans remain largely united behind the bill. He also said many Senate Democrats want the legislation finished after nearly 80 House Democrats supported the measure.
Senator Cynthia Lummis warned on May 29 that Congress may not get another serious chance to pass digital asset legislation until 2030. According to Lummis, developers will remain exposed without legal protections if lawmakers fail to act during this Congress.
President Donald Trump has also made cryptocurrency regulation a priority for his administration. In a post on Truth Social, Trump backed a “future-proof” digital asset market framework, while his team targeted a July 4 signing date.
Banks can introduce cryptocurrencies under new rules
Shirzad described the bill as a way for banks to enter the cryptocurrency sector under clearer federal rules. He said the legislation would give banks new authority to participate in digital assets for the first time since the 1990s.
According to Shirzad. JP Morgan Other major banks want access to the cryptocurrency market. He said Coinbase would welcome traditional financial companies if Congress created a legal structure for them to participate.
Coinbase also received a separate regulatory win on May 29. The Commodity Futures Trading Commission issued guidance allowing Coinbase Financial Markets to connect US institutional clients to global cryptocurrency derivatives markets.
Shirzad described the CFTC’s move as a major regulatory opening. He said the decision supports Trump’s stated goal of bringing more cryptocurrency market activity to American soil.
Stablecoin rewards remain the central issue
One unresolved political battle involves stablecoin rewards. Senators Thom Tillis and Angela Alsobrooks reached a compromise in May that would ban economic rewards similar to interest on bank deposits while allowing activity-based incentives.
Shirzad said Tillis and Albrooks made it clear that the settlement language was consistent. He said they plan to defend this language with other lawmakers.
JPMorgan Chase CEO Jamie Dimon criticized the bill during a May 28 interview with Maria Bartiromo. Cryptocurrency platforms must act as banks if they want bank-like privileges, Dimon said.
Dimon also raised concerns about anti-money laundering rules and enforcement of the Bank Secrecy Act. He said that banks will not accept the draft law without changes. CEO of Coinbase Brian Armstrong He responded online with a hockey-themed meme after Damon criticized his description of Banks’ situation. Shirzad later noted that JP Morgan remains Coinbase’s bank, even after disagreements over cryptocurrency policy.
