Coinbase CEO Sees Crypto Regulation Moving Forward Regardless of Clarity Act
The legislation was ready to be supported by the Senate, Coinbase CEO Brian Armstrong told CNBC’s “Squawk Box Asia” on Thursday, saying people he has spoken to are on board with the legislation.
While Armstrong was optimistic about the prospects of the legislation gaining Senate approval, he said that even if that doesn’t happen, the sector will gain greater regulatory clarity.
“Frankly, if it doesn’t pass, that’s also going to be a good outcome because the SEC and the CFTC have said they’re ready to release the rulemaking, and we’re going to get regulatory clarity one way or another on the 15th or a day or two after that,” he said.
Coinbase has been a strong 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, which will be voted on in the Senate on September 15.
Getting 60 votes has become a key challenge, with ethics provisions among the issues being negotiated.
“The way to get 60 votes is with good ethics legislation, plus completing some of the things that are still pending,” Democratic Sen. Ruben Gallego of Arizona said at the Wyoming Blockchain Symposium last month.
Armstrong said the details of the ethics provisions were still being worked out and negotiated, but it appeared “very close to a solution” before the vote.
He described the potential passage of the Clarity Act as a “regulatory checkbox” that could help unlock institutional capital and pave the way for products like tokenized stocks in the U.S. “It would be a huge milestone.”
The Clarity Act, introduced in May 2025 to establish clearer rules for the American crypto industry, was passed by the House last July.
Beyond cryptocurrency trading
Coinbase has been diversifying its business beyond cryptocurrency spot trading, which Armstrong said “has basically been down for the last year.”
About half of Coinbase’s revenue comes from trading, Armstrong said. The company has expanded its trading business into areas including equities, commodities and currencies, while its non-trading revenue includes 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 with a profit of $1.43 billion in the same period a year earlier. Coinbase missed Wall Street expectations in both revenue and profit for the third consecutive quarter.
Coinbase has also expanded abroad, establishing a presence in the United Arab Emirates and Singapore, which Armstrong described as its hub in Asia.
Establishing such centers had been important during periods when the US regulatory environment was less permissive, he said, adding that Coinbase is also looking to expand in markets where governments are more receptive to cryptocurrencies.
“We basically try to grow when we have windows and try to bide our time in areas where we feel hostility,” Armstrong said.
Coinbase shares have fallen nearly 23% so far this year. Armstrong attributed some of the pressure on the company’s finances to the decline in cryptocurrency spot trading over the past year.
