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

Odaily News – Coinbase Chief Policy Officer Faryar Shirzad wrote 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, and simply echoes the views of the banking association.

Shirzad stated that the CLARITY Act imposes multiple restrictions on stablecoin rewards, tying them to customer activity, and that there is currently no evidence to support the "deposit flight" claim. 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 outflows.

Furthermore, Shirzad emphasized that the CLARITY Act does not provide immunity for DeFi-related crimes, but rather distinguishes between code developers and financial intermediary operators, with fraud, sanctions violations, and money laundering still 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 digital asset regulatory rules.