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\n\t\t\t\t\t\t\t\t\tA stalled bill may leave Coinbase with breathing room, but Armstrong acknowledged that the outcome is not necessarily good for the industry.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Coinbase CEO Brian Armstrong believes the US Senate\u2019s failure to advance the CLARITY Act could benefit his exchange by keeping major Wall Street firms from entering the crypto market under clearer rules.<\/p>\n
The crypto executive still argued that the legislation would have helped the wider industry, even as he acknowledged that Coinbase could face less competition without it.<\/p>\n
In a September 20 interview with Scott Melker, the Coinbase chief explained<\/a> that the bill\u2019s failure could have a mixed effect on the company. While regulatory clarity could attract more traditional financial institutions to crypto, it would also open the door to new competitors.<\/p>\n \u201cEvery major financial services company in the world would have started integrating crypto with regulatory clarity. We would have had tons more competition,\u201d Armstrong noted. \u201cSo in a way, honestly, it arguably could even be better for us to go under this path, because we\u2019re one of the few companies who\u2019s willing to go through that.\u201d<\/p>\n<\/blockquote>\n The executive also revisited Coinbase\u2019s objections to an earlier version of the legislation. The January draft raised concerns around tokenized equities, penalties for decentralized finance developers, the Commodity Futures Trading Commission\u2019s authority over spot markets, and stablecoin rewards.<\/p>\n He maintained that those four issues had been addressed in the latest Senate draft, removing the objections Coinbase had previously raised.<\/p>\n The Senate vote on September 15 was procedural, not a final vote on the bill. It failed<\/a> to advance by a 49-50 margin, falling short of the 60 votes required to proceed. Armstrong argued that the process could have allowed lawmakers to negotiate amendments and continue discussions.<\/p>\n You can hear more about what happened with the CLARITY vote in our video below.<\/p>\n\n
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