Coinbase CEO Brian Armstrong believes the US Senate’s failure to advance the CLARITY Act could benefit his exchange by preventing large Wall Street firms from entering the crypto market under clearer rules.
The crypto executive has always maintained that the legislation would have helped the entire industry, although he acknowledged that Coinbase might face less competition without it.
Passed bill would mean more competition
In a September 20 interview with Scott Melker, the head of Coinbase explain that the failure of the bill could have a mixed effect on the company. While regulatory clarity could attract more traditional financial institutions to crypto, it would also open the door to new competitors.
“Every major financial services company in the world would have started integrating crypto with clear regulation. We would have had a lot more competition,” Armstrong noted. “So in some ways, honestly, it might even be better for us to go that route, because we’re one of the few companies that wants to go that route.”
The executive also revisited Coinbase’s objections to an earlier version of the legislation. The January draft raised concerns about tokenized stocks, sanctions for decentralized financial developers, the Commodity Futures Trading Commission’s authority over spot markets, and stablecoin rewards.
He argued that these four issues were addressed in the latest Senate draft, removing objections previously raised by Coinbase.
The Senate vote on September 15 was a procedural vote and not a final vote on the bill. He failed to advance by a margin of 49 to 50, short of the 60 votes required to proceed. Armstrong argued the process could have allowed lawmakers to negotiate amendments and continue discussions.
You can learn more about what happened with the CLARITY vote in our video below.
Coinbase turns to regulators after Congressional blockages
With legislation stalled, the exchange’s CEO said Coinbase may continue to work with the SEC and CFTC to develop rules for the industry.
“In the short term, it’s probably better for us in some ways,” he told Melker. “It’s a little more permissive to let the SEC and the CFTC do it.”
He views the bill as effectively dead unless lawmakers revive it, and as CryptoPotato Earlier reported, seven Democratic senators indicated that the setback does not mark the end of efforts to advance crypto legislation.
Armstrong’s comments come amid broader disagreement over how crypto regulation should approach stablecoin rewards and the relationships between crypto companies and traditional banks. The GENIUS Act established a federal framework for payment stablecoins, but questions around competition with banks remain at the heart of the debate.
He added that Coinbase was willing to work with banks, rather than treating them solely as rivals.
The article Brian Armstrong: CLARITY Act Failure Could Benefit Coinbase appeared first on CryptoPotato.
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