Key highlights:
- Brian Armstrong said crypto rules would advance even if the crypto bill stalls
- He added that the bill still has strong bipartisan support and a good chance of passing
- Armstrong said clear regulation would also be key for stablecoin payments
Coinbase CEO Brian Armstrong said the crypto industry would get regulatory clarity no matter how the Senate votes on the CLARITY Act next week. Armstrong told CNBC that even if the legislation fails to pass, regulators have made plans to move forward with their own rules.
CLARITY Act vote outcome won’t halt progress
The Senate is set to vote on the crypto bill next week, which could share oversight of digital assets between the SEC and the CFTC. Armstrong said that passage would be a welcome outcome, but a failed vote would not necessarily set the industry back.
“If it passes, great, we’ve got legislation,” he said. “Frankly, if it doesn’t pass, it’s also going to be a good outcome because the SEC and the CFTC have said that they’re ready to publish rulemaking, and we’re going to get regulatory clarity one way or another on the 15th or the day or two after.”
His comments are similar to SEC Chair Paul Atkins’s stance on the CLARITY Act delay. He previously said the agency is preparing its own crypto rules regardless of what happens next Tuesday.
However, Armstrong maintained an optimistic tone on the bill’s prospects of progressing. He highlighted the broad backing from crypto companies, banks and law enforcement groups.
“There’s been a lot of good bipartisan compromise, hundreds of pages of input from both sides,” he said, adding that the “must-have issues” Coinbase had previously flagged “have now been resolved.”
Ethics provisions remain the sticking point
The unresolved ethics provisions for elected officials are still a bone of contention in the CLARITY Act. When asked whether the bill addresses conflicts of interest, Armstrong said the details were “still being worked out and negotiated.”
He explained that the White House has recommended “a very strong ethics provision,” but Democrats have asked for an amendment that would include divestiture requirements. Armstrong added that negotiators “appear to be very close to a solution.”
Democratic Senator Ruben Gallego of Arizona previously said the ethics language fix is key to getting the votes the bill needs to clear the Senate.
Meanwhile, Senator Cynthia Lummis warned earlier in the week that the CLARITY Act could stall till 2030 if an agreement is not reached in the upcoming meeting.
Armstrong maintains $400,000 Bitcoin outlook
The Coinbase CEO maintained his bullish view on Bitcoin, telling CNBC that a price of $400,000 by 2030 is still “a reasonable target.”
He also shared his views on the current market cycle, saying “the bottom is in on Bitcoin in this most recent cycle.” This builds on comments he made in August, when he said BTC could be entering its next bull cycle.
Notably, Coinbase has continued to diversify beyond crypto spot trading, which Armstrong said has “basically been down for the last year.” About half of the company’s revenue still comes from trading, though it has expanded into stocks, commodities and foreign exchange.
The company missed Wall Street’s expectations for a third straight quarter, posting a second-quarter revenue of $1.2 billion, down from $1.5 billion a year earlier. COIN stock has also fallen about 23% so far this year.
Source:: Coinbase CEO Says Crypto Regulation Won't Stall Even If CLARITY Act Vote Fails