Urgent Push: Coinbase Lobby and 65 Crypto Groups Demand CLARITY Act Passage in US Congress

The push for clear Crypto Regulation in the United States is heating up. A significant coalition led by Coinbase’s lobbying arm, Stand With Crypto, has sent a strong message to lawmakers on Capitol Hill. Alongside 65 other crypto advocacy groups and firms, they are urging the US House of Representatives to swiftly pass a crucial piece of legislation when they convene next week. This isn’t just a polite suggestion; it’s a unified call to action from a substantial part of the industry.

Why the Industry Wants the CLARITY Act

The core of this plea revolves around the Digital Asset Market Clarity Act, widely known as the CLARITY Act. Why is this bill so important to the crypto world? The letter from Stand With Crypto and its allies lays it out plainly:

• **Defining Roles:** The bill aims to clearly delineate the responsibilities of the two primary US financial regulators concerning digital assets: the Commodity Futures Trading Commission (CFTC SEC Crypto) and the Securities and Exchange Commission (CFTC SEC Crypto).
• **CFTC Leads:** Under the CLARITY Act, the CFTC would gain primary jurisdiction over most digital assets. The SEC’s role would be more focused on crypto-related products that are deemed securities.
• **Avoiding Uncertainty:** The groups argue that the current lack of defined rules creates uncertainty, hindering innovation and adoption. This ambiguity makes it difficult for businesses to operate and for institutional investors to enter the market confidently.

The industry coalition believes that without clear “rules of the road,” the U.S. risks falling behind other nations that are adopting more crypto-friendly policies. They see signs of U.S. leadership in crypto already slipping, with talent and businesses considering moving to jurisdictions with more predictable regulatory environments.

The Coinbase Lobby and Congressional Action

Coinbase’s active role through its lobbying arm, Stand With Crypto, highlights the industry’s commitment to engaging with lawmakers. The Coinbase Lobby is a key player in this effort, mobilizing a broad spectrum of companies, from major exchanges to NFT platforms like OpenSea and Dapper Labs, to speak with a united voice. Their message to the US Congress Crypto is that market structure is desperately needed to secure America’s economic future in the digital age.

Good news for the advocates came recently when Republican House leaders announced plans to consider the CLARITY Act during the week of July 14, which they’ve dubbed “Crypto Week.” This indicates that digital asset legislation is moving up the agenda. Alongside the CLARITY Act, the House will also review bills related to banning central bank digital currencies (the Anti-CBDC Surveillance State Act) and regulating stablecoins (the GENIUS Act).

Navigating the Political Landscape

While the CLARITY Act has advanced through key House committees, its path to becoming law is not guaranteed. The GENIUS Act is likely to be prioritized as it has already passed the Senate and received support from former President Trump. However, the CLARITY Act still needs to pass the full House and then the Senate. Senate Banking Committee Chair Tim Scott has expressed a desire to pass a crypto market structure bill before the end of September, offering a potential timeline.

However, political hurdles remain. Some Democrats have voiced strong opposition to the CLARITY Act. For instance, Maxine Waters, a leading Democrat on the House Financial Services Committee, has criticized the bill as rushed, overly complicated, and potentially exempting risky activities from regulation. Concerns have also been raised about the timing and perceived connections to the Trump family’s increasing involvement in crypto ventures.

This political dynamic adds complexity to the legislative process, highlighting the differing views on how Crypto Regulation should be approached and the potential influence of political considerations on policy decisions.

Summary: The Urgent Call for Clarity

The collective voice of the Coinbase Lobby and 65 other crypto entities underscores the urgent need for clear Crypto Regulation in the U.S. They argue that the CLARITY Act is a vital step towards defining the roles of the CFTC SEC Crypto and fostering innovation. While the bill is progressing in the House and scheduled for consideration during “Crypto Week,” it faces significant political challenges, particularly in the Senate and among some Democrats. The industry is making its position clear: without defined rules, the U.S. risks losing its competitive edge in the rapidly evolving global digital economy. The coming weeks will be critical in determining the fate of this pivotal legislation in the US Congress Crypto.