The battle over U.S. crypto regulation is heating up, with Coinbase doubling down on efforts to secure passage of the CLARITY Act ahead of a critical Senate vote scheduled for this month. The proposed legislation, formally known as the Digital Asset Market Clarity Act, could reshape the financial landscape by providing long-awaited rules for digital asset firms.
Faryar Shirzad, Coinbase’s chief policy officer, described the bill as potentially the most significant financial regulatory overhaul since the Dodd-Frank Act. He emphasized that the legislation would deliver clear guidelines to companies operating in the crypto space, ending years of uncertainty under fragmented state-level oversight.
The bill cleared the Senate Banking Committee on May 14 with a 15-9 vote, earning support from Democrats like Ruben Gallego and Angela Alsobrooks alongside Republicans. However, it now requires 60 votes to advance to the floor, a threshold that remains uncertain as lawmakers debate key provisions.
According to Shirzad, Republican support remains solid, and a number of Senate Democrats are eager to finalize the bill, especially after nearly 80 House Democrats backed an earlier version. He pointed to growing bipartisan momentum, though opposition from figures like JPMorgan Chase CEO Jamie Dimon has intensified the debate.
Dimon criticized the CLARITY Act in a recent interview, arguing that crypto platforms should follow existing banking rules if they want similar privileges. He raised concerns about anti-money laundering compliance and the Bank Secrecy Act, stating that banks would not accept the bill without significant changes. Coinbase CEO Brian Armstrong hit back with a sarcastic hockey-themed meme on social media, while Shirzad noted that JPMorgan remains Coinbase’s banking partner despite the policy disagreements.
Wyoming Senator Cynthia Lummis warned that if Congress fails to act on digital asset legislation during this session, the next opportunity may not come until 2030. She stressed that developers currently lack legal protections and that law enforcement lacks tools to combat bad actors, making the CLARITY Act essential for both innovation and consumer safety.
President Donald Trump has made crypto regulation a priority, backing the bill on Truth Social and targeting a July 4 signing date. The administration views the legislation as a way to create a future-proof framework for digital assets.
Another major aspect of the bill is its potential to allow banks to enter the crypto market under federal oversight. Shirzad explained that the legislation would grant banks new authority to participate in digital assets for the first time in decades, a move that could bring traditional players like JPMorgan into the sector. Coinbase has welcomed this prospect, seeing it as a sign of industry maturation.
Stablecoin rewards remain a contentious issue. A compromise brokered by Senators Thom Tillis and Angela Alsobrooks blocks rewards that mimic bank deposit interest while permitting activity-based incentives. Shirzad confirmed that this language is final and will be defended during floor debate.
In a separate win for Coinbase, the Commodity Futures Trading Commission issued guidance on May 29 allowing Coinbase Financial Markets to connect U.S. institutional clients to global crypto derivatives markets. Shirzad hailed this as a regulatory breakthrough that aligns with Trump’s goal of onshoring crypto activity.