Coinbase says criticism that the CLARITY Act is moving too slowly misses the point: building real, durable crypto regulation is the “hard level,” and it takes time.
Coinbase says criticism that the CLARITY Act is moving too slowly misses the point: building real, durable crypto regulation is the “hard level,” and it takes time.
What Coinbase Is Arguing
According to Coinbase, the CLARITY Act is difficult precisely because it aims to:
- Create clear, enforceable rules instead of ad‑hoc enforcement
- Define jurisdictional boundaries between regulators
- Protect consumers without crushing innovation
- Provide legal certainty that can last decades, not election cycles
Fast rules are easy. Correct rules are not.
Why This Matters for Crypto
For much of crypto’s history, the industry has faced:
- Regulatory ambiguity
- Enforcement‑first policymaking
- Conflicting interpretations across agencies
Coinbase argues the CLARITY Act represents a shift toward rule‑of‑law regulation, which is essential for:
- Institutional adoption
- Bank participation
- Long‑term capital investment
“Hard Level” vs. “Easy Level”
- Easy level: Temporary guidance, exemptions, or enforcement actions
- Hard level: Comprehensive legislation that works across markets, products, and decades
The latter inevitably moves slower—but provides far greater payoff.
What the CLARITY Act Could Unlock
If passed and implemented effectively:
- Clear standards for when assets are securities vs. commodities
- Predictable compliance pathways for exchanges and builders
- Greater confidence for banks, funds, and public companies
- Reduced regulatory risk premium across the market
The Trade‑Off
- Short‑term frustration with timelines
- Long‑term stability once rules are in place
Coinbase’s position is that rushing crypto legislation risks repeating mistakes seen in earlier financial reforms.
Bottom Line
Coinbase’s message is that the CLARITY Act isn’t dragging—it’s doing the hard work. Real crypto regulation isn’t about speed; it’s about getting it right. If successful, the payoff could be a regulatory foundation strong enough to support crypto’s next multi‑decade growth phase.
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