Coinbase Policy Chief Rebuts WSJ Criticism of CLARITY Act, Urges Senate Passage

Odaily News - Coinbase Chief Policy Officer Faryar Shirzad stated on the X platform that the Wall Street Journal's (WSJ) criticism of the CLARITY Act is disappointing, arguing that it abandons principles of free markets and competition in favor of maintaining regulatory barriers, while echoing the views of banking associations.

Shirzad stated that the CLARITY Act imposes multiple restrictions on stablecoin rewards and ties them to customer activity, adding that there is currently no evidence to support the "deposit flight" claim. He noted that three independent studies, including one from the White House Council of Economic Advisers (CEA), have found no evidence that stablecoin growth leads to bank deposit outflows.

Furthermore, Shirzad emphasized that the CLARITY Act does not provide exemptions for DeFi-related crimes. Instead, it distinguishes between code developers and financial intermediary operators, with fraud, sanctions violations, and money laundering remaining subject to legal prosecution.

Shirzad urged the U.S. Senate to pass the CLARITY Act, stating that America needs to establish long-term, stable federal digital asset regulatory rules.