Clarity Act Gains Steam as Regulators Align on Crypto Framework

Coinbase CEO Brian Armstrong has become a leading voice advocating for the Digital Asset Market Clarity Act, a piece of legislation aimed at resolving regulatory ambiguities in the U.S. digital asset space. Following recent meetings in Washington, D.C., Armstrong expressed unprecedented optimism that the bill, which would clarify the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), is on the verge of passing. His comments were shared in a video post on X, where he emphasized the importance of clear market structure in fostering innovation and protecting consumers.

The Clarity Act, which has garnered strong bipartisan support in the Senate, is seen as a critical step toward institutionalizing the crypto industry within the U.S. financial framework. According to Armstrong, the bill would allow digital assets like tokenized equities—assets that are currently subject to regulatory uncertainty—to be clearly defined and regulated. This clarity is essential for attracting institutional investment and ensuring that the U.S. remains a global leader in crypto innovation.

Industry engagement with the Clarity Act has been robust. Executives from major firms such as Ripple, Kraken, Circle, and Cardano, as well as prominent venture capital firms like Andreessen Horowitz and Paradigm, have participated in roundtable discussions to shape the bill’s language. Arjun Sethi, co-CEO of Kraken, noted the importance of protecting innovators in the space and ensuring that the incentives in the system remain aligned with builders rather than existing financial incumbents.

Armstrong also highlighted the broader implications of the bill, pointing out that it would prevent future regulatory overreach by agencies like the SEC. He cited the controversial tenure of former SEC Chair Gary Gensler as a cautionary example of how regulatory ambiguity can stifle the industry’s growth. He added that the bill is a “freight train leaving the station,” indicating a strong likelihood of passage by the end of the year.

Senator Cynthia Lummis, a key advocate for the bill, has predicted that it could be signed into law by President Donald Trump before year-end. This timeline aligns with broader legislative and regulatory momentum in the U.S. toward fostering crypto innovation. In a related development, the SEC and CFTC recently issued a joint statement clarifying that registered exchanges can legally list spot crypto products, including those with leverage or margin. This move further supports the growing consensus among regulators that crypto markets need a clear and cooperative regulatory framework.

While the focus remains on the Clarity Act, other legislative efforts are also gaining traction. The BITCOIN Act, which aims to establish a Strategic Bitcoin Reserve for the U.S. government, has also drawn attention. During a separate roundtable, 18 Bitcoin leaders, including MicroStrategy’s Michael Saylor, proposed budget-neutral methods to acquire one million Bitcoin over the next five years. These efforts reflect a broader shift in U.S. financial policy under the Trump administration, which has taken a more accommodating stance toward digital assets.