Coinbase CEO Brian Armstrong expressed optimism about the Clarity Act's chances of passing in the Senate, highlighting broad support from various stakeholders, including crypto firms and law enforcement. The Act, which seeks to delineate the regulatory responsibilities between the SEC and the CFTC, is set for a vote on September 15.
Armstrong noted that securing the necessary 60 votes is challenging, particularly due to ongoing negotiations over ethics provisions. He emphasized that regardless of the Act's outcome, regulatory clarity is imminent, as both the SEC and CFTC are prepared to issue new rules.
This clarity is seen as crucial for unlocking institutional investment in the crypto space and could facilitate the introduction of new financial products. Coinbase has been diversifying its revenue streams beyond crypto trading, which has been declining, and reported a significant drop in revenue and a net loss in its latest quarterly results.
The company is also expanding internationally, establishing operations in more crypto-friendly jurisdictions. Armstrong attributed some of the financial pressures on Coinbase to the downturn in crypto trading, with the company's shares down nearly 23% this year