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

Odaily – Coinbase Chief Policy Officer Faryar Shirzad stated on X 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 protecting regulatory barriers, while echoing the views of banking associations.

Shirzad said 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 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-related crimes, but rather distinguishes between code developers and financial intermediary operators, with fraud, sanctions violations, and money laundering remaining subject to legal enforcement.

Shirzad called on the U.S. Senate to pass the CLARITY Act, stating that America needs to establish long-term, stable federal regulatory framework for digital assets.