The Clarity Act, which seeks to establish a U.S. federal framework for digital assets, is likely to pass given widespread support from crypto companies, law enforcement and multiple banks, Coinbase CEO Brian Armstrong said.
The bill is ready for support in the Senate, Coinbase CEO Brian Armstrong said Thursday on CNBC’s “Squawk Box Asia” that people he has spoken to support the bill.
Armstrong said he is optimistic about the bill’s prospects for Senate approval, but even if it doesn’t, there will be more regulatory clarity in this area.
“Frankly, even if it doesn’t pass, that would be a good outcome, because the SEC and the CFTC have said they’re willing to issue a proposed rulemaking, and we’ll probably get some form of regulatory clarity on the 15th or the next day or the day after that,” he said.
coinbase He is a vocal supporter of the Clarity Act, which aims to define oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, and is scheduled for a vote in the Senate on September 15th.
Securing 60 votes has emerged as a key issue, and ethics rules are also among the issues under negotiation.
“To get 60 votes, we need to have good ethics laws in place and iron out some of the loose ends,” Arizona Democratic Sen. Ruben Gallego said at the Wyoming Blockchain Symposium last month.
Armstrong said the details of the ethics code are still being worked out and negotiated, but ahead of the vote it appears “very close to a resolution.”
He described the potential passage of the Clarity Act as a “regulatory checkbox” that could help unlock institutional capital in the U.S. and pave the way for products such as tokenized stocks. “It would be a huge milestone.”
The Clarity Act, introduced in May 2025 to establish clearer rules for the U.S. crypto industry, was passed by the House of Representatives last July.
Beyond virtual currency trading
Although Coinbase has been diversifying its business beyond crypto spot trading, Armstrong said the company has been “basically sluggish for the past year.”
About half of Coinbase’s revenue comes from trading, Armstrong said. The company has expanded its trading business into areas such as stocks, commodities, and foreign exchange, and its non-trading revenues include stablecoins and institutional custody.
Coinbase reported second-quarter results in July, with revenue falling to $1.2 billion from $1.5 billion a year earlier. The company posted a net loss of $359.5 million, compared to a profit of $1.43 billion in the year-ago period. Coinbase has missed Wall Street expectations for the third consecutive quarter on both revenue and profit.
Coinbase has also expanded internationally, establishing a presence in the United Arab Emirates and Singapore, which Armstrong calls his base in Asia.
He said establishing these hubs was important at a time when the U.S. regulatory environment was less permissive, adding that Coinbase is also looking to expand into markets where governments are more tolerant of cryptocurrencies.
“We’re basically just trying to grow when we can afford it, and trying to be on time in areas where we feel hostile,” Armstrong said.
Coinbase stock is down nearly 23% so far this year. Armstrong attributed some of the pressure on the company’s finances to spot trading in cryptocurrencies, which have been depressed over the past year.
