Coinbase Faces Scrutiny as CLARITY Act Delay Raises Regulatory Concerns

Coinbase Faces Scrutiny as CLARITY Act Delay Raises Regulatory Concerns

The delay of the CLARITY Act, crucial for crypto market structure, is causing market uncertainty, with $952 million in outflows noted. Will lawmakers act before 2026?

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The delay in advancing the CLARITY Act has led to significant market uncertainty, as noted by CoinShares in its latest report. Coinbase's head of institutional strategy, John D’Agostino, expressed understanding regarding the prolonged process during a CNBC interview on Friday. He emphasized the foundational importance of the legislation for the growth of the cryptocurrency sector.

D’Agostino pointed out that the CLARITY Act is inherently more complex than the recently passed Genius Act, which focused on stablecoin regulation. While the Genius Act tackled transformative issues, he stated that the CLARITY Act addresses more intricate aspects of market structure.

In a recent comment, David Sacks, the White House advisor on AI and crypto, indicated that the CLARITY Act may be approved by January. D’Agostino remains optimistic about its passage, noting increased global momentum for crypto regulation in regions like Europe and the UAE. He highlighted the ongoing talent exodus from the US as a pressing factor that could accelerate legislative action, aiming to prevent the country from lagging behind in emerging technologies.

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