Market structure legislation seen as complex but critical for long-term digital asset growth
A senior Coinbase executive has pushed back against criticism surrounding delays to the Digital Asset Market Clarity Act (CLARITY Act), arguing that the legislation’s scope and importance justify the extended timeline. While parts of the crypto industry are growing impatient, industry leaders say the bill is progressing as expected given its complexity.
Speaking in a recent televised interview, Coinbase Institutional’s head of strategy stated that the CLARITY Act is fundamentally more complex than the Genius Act, which became law in July and focused primarily on stablecoin regulation. He noted that while the Genius Act was transformative, it addressed structurally simpler issues than comprehensive market structure legislation.
THE CLARITY Act is foundational for the future of crypto markets in the United States, as it aims to define regulatory boundaries across trading, custody, and digital asset classification. Such breadth, he said, naturally requires more deliberation.
Growing Pressure on US Lawmakers
Momentum may be building. In December, senior government officials signaled that the CLARITY Act could advance early next year. Supporters point to global regulatory progress, including Europe’s MiCA framework and the Middle East’s pro-crypto policies, as increasing pressure on US lawmakers.
The Coinbase executive also highlighted a “massive flight of talent” leaving the US due to regulatory uncertainty, warning that delays could leave the country further behind in blockchain and artificial intelligence innovation.
Recent data shows nearly one billion dollars in weekly outflows from crypto investment products, attributed partly to prolonged regulatory uncertainty. While some analysts believe the CLARITY Act will stabilize markets, others argue it may not significantly impact Bitcoin’s long-term valuation, underscoring divided expectations around the bill’s economic effect.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.