Coinbase CEO calls on SEC, CFTC after CLARITY Act fails: ‘Can’t wait on Congress anymore’
Fairshake’s reported strategy raises a harder question: what exactly earns the industry’s support?
The crypto industry is now exploring ways to push forward its regulatory agenda after the CLARITY Act failed the Senate procedural vote on Tuesday, the 15th of September.
In a post on X after the bill stalled, Brian Armstrong, Coinbase CEO, urged the main market regulators, the SEC and CFTC, to step in and create clear rules for the sector.
We can’t wait on Congress anymore. The SEC and CFTC have the tools they need to create clear rules under existing authority, and I expect will begin working on this in earnest.
On the failed vote, Armstrong called it a “disappointment.” However, he said the failure could be “for the best,” noting that some stablecoin yield compromises in the bill were “tough to swallow.”
White House Chief Crypto Advisor, Patrick Witt, also reiterated the same stance and called the vote outcome a “failure of American leadership.” But he warned that the global financial markets’ standards will now look up to Europe and China.
Can the SEC and CFTC deliver crypto rules?
The attention has now shifted to the November midterm elections.
Worth noting that several Senate Democrats who were initially perceived as moderate voted against the bills.
The Senators include Kirsten Gillibrand (D-NY), Mark Warner (D-VA), Cory Booker (D-NJ), Raphael Warnock (D-GA), Reuben Gallego (D-AZ), Angela Alsobrooks (D-MD), and Catherine Cortez (D-NV).
In fact, these moderate Democrats have spent the past few months negotiating the bill and were expected to be the crucial swing votes to hit the 60-vote threshold for the bill to advance.
The bill stalled after a 49-50 vote. Interestingly, some of the team, such as Gallego and Alsobrooks, received considerable crypto support in past elections.
Although the ethics provision and Democrats’ demand to rein in alleged Trump family corruption in the crypto sector were among the major deal breakers, there seems to be more of a last-minute shift.
Reports indicated that crypto’s super PAC (Fairshake) was planning to not spend on Democrats who supported the bill.
Still, Stand With Crypto, a Coinbase-backed lobby group, has warned anti-crypto lawmakers who voted against the CLARITY Act.
This November, crypto voters will show up and demonstrate their power at the ballot box.
Bloomberg Analyst Eric Balchunas made a similar warning for lawmakers. 15 out of the 50 Senators who voted against the bill are up for election.
However, Galaxy’s founder Mike Novogratz had a different take.
I honestly don’t believe crypto and this bill will be a top 10 issue in this election. It was in 2024, but this year will be about the war, inflation, affordability, AI, and immigration.
It’s unclear whether the industry can win support in the next Congress post-November midterms.
Final Summary
- Coinbase CEO called for SEC and CFTC to fast-track crypto regulations after CLARITY Act stalled
- Crypto PACs want to decampaign lawmakers that voted against the bill
