Coinbase policy chief pushes back on WSJ criticism of CLARITY Act, urges Senate passage

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

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

Furthermore, Shirzad emphasized that the CLARITY Act does not provide exemptions for DeFi criminal conduct, but rather distinguishes between code developers and financial intermediary operators, with fraud, sanctions violations, and money laundering still subject to legal enforcement.

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.