The September 15 Countdown for Crypto in the US: What if the Bill Fails?

Coinbase CEO Brian Armstrong stated that regulatory clarity for crypto will emerge in the US regardless of the outcome of the Clarity Act vote.

Speaking to CNBC, Brian Armstrong argued that the U.S. Senate’s Clarity Act vote, scheduled for September 15, could lead to positive outcomes for the crypto sector in two different ways. According to Armstrong, if the bill passes, a legal framework will be established; if it fails, regulatory clarity could be provided through the rulemaking efforts of the SEC and CFTC.

The Digital Asset Market Clarity Act aims to resolve uncertainty regarding which agency will oversee crypto assets in the US. The bill envisages that tokens considered securities will be overseen by the SEC, while decentralized commodities like Bitcoin will be overseen by the CFTC. It also aims to create a federal framework for crypto exchanges, broker-dealers, and stablecoins.

Critical highlights for the Clarity Act

Armstrong said that even if the bill does not pass, the SEC and CFTC are ready to publish rulemakings on the day of the vote or within the following day or two.

Armstrong stated that the bill has bipartisan support and that law enforcement, banks, and crypto companies support the process. Arguing that the fundamental issues previously raised by Coinbase have been resolved, Armstrong nonetheless acknowledged that ethical provisions regarding elected officials owning digital assets have not yet been finalized.

Stating that the White House proposed strong ethical regulations, Armstrong noted that Democrats additionally want a provision that would mandate the divestment of digital assets. Indicating that the parties are close to a resolution, Armstrong stated that a definitive agreement has not yet been reached on this section of the bill.