Coinbase is ramping up its push for better rules in the U.S. crypto market. With the Senate preparing for a crucial vote on the CLARITY Act this month, the exchange hopes the bill will move forward quickly. Coinbase's head of policy, Faryar Shirzad, has described the bill as one of the most important financial regulatory acts in the U.S. since Dodd-Frank.
The Senate still needs 60 votes.
The bill passed the Senate Banking Committee on May 14 by a vote of 15 to 9. Ruben Gallego from Arizona and Angela Alsobrooks from Maryland voted in favor along with the Republicans. The bill now needs 60 votes in the full Senate to move forward.
Senator Cynthia Lummis warned on X on May 29 that if the current Congress fails to pass digital asset legislation, Congress may not have a similar opportunity again until 2030. She stated that without legislation, developers will continue to lack clear legal protection.
Bank entry and stablecoin rewards
Shirzad said the bill will provide clearer federal rules for banks entering the crypto industry and will grant traditional financial institutions new permissions to participate in digital assets for the first time since the 1990s. He mentioned that large banks such as JPMorgan are looking to enter this market, and Coinbase welcomes more traditional institutions to participate.
Meanwhile, the terms of stablecoin rewards remain a point of contention. Senators Thom Tillis and Angela Alsobrooks reached a compromise in May, banning rewards with economic effects similar to bank deposit interest but retaining activity-based incentives. Shirzad said the wording is finalized and the two will continue to push for its support from other senators.
Coinbase receives another regulatory update
Coinbase also saw another regulatory development on May 29th. The U.S. Commodity Futures Trading Commission (CFTC) issued guidance allowing Coinbase Financial Markets to connect U.S. institutional clients to the global crypto derivatives market. Shirzad stated that this change is a significant regulatory relaxation and will help keep more crypto trading activity within the United States.
JPMorgan Chase CEO Jamie Dimon criticized the bill in an interview on May 28, stating that if crypto platforms want bank-like rights, they should operate according to banking standards. Coinbase CEO Brian Armstrong subsequently responded online with a hockey emoji, and Shirzad added that despite the policy differences, JPMorgan remains Coinbase's bank.
