Coinbase Executive Highlights Complexity and Bipartisan Momentum of the CLARITY Act
Coinbase executive John D’Agostino has stated that the CLARITY Act, aimed at regulating the crypto sector, will take longer to finalize than stablecoin legislation due to the complexity involved in overseeing decentralized finance (DeFi) and classifying tokens. Despite these challenges, bipartisan momentum is expected to help push the bill through in 2026.
The Senate Banking Committee has scheduled a markup for January 15 after experiencing delays related to disagreements on DeFi oversight, token-class standards, and restrictions on stablecoin yields. The draft legislation assigns the Commodity Futures Trading Commission (CFTC) as the primary authority for non-security tokens that meet decentralization tests, while the Securities and Exchange Commission (SEC) would oversee tokens associated with ongoing managerial activities and revenue-sharing features. Operators of DeFi front-end platforms and fee-collecting DAOs would be required to register under the bill. Safe harbors are included for immutable components.
The bill seeks a bipartisan manager’s amendment to secure 60 Senate votes. Expected amendments include provisions addressing DeFi custody, sanctions enforcement, and the inclusion of crypto-native stablecoin rewards within retirement accounts.
International regulatory developments, such as Europe's Markets in Crypto Assets (MiCA) regulation and regulatory clarity emerging from the UAE, are cited as competitive pressures prompting urgent establishment of a federal framework in the U.S. this year.
D’Agostino referenced the GENIUS Act as a roadmap demonstrating how regulatory clarity can unlock institutional adoption. He noted the involvement of JPMorgan and Citigroup in stablecoins and predicted comparable opportunities for non-financial firms across supply chains and customer interactions.
While acknowledging pushback from the banking sector regarding stablecoin yields, D’Agostino argued that yield-bearing stablecoins do not threaten deposit-funded lending. He explained that banks typically earn about 4% on reserves, whereas stablecoin platforms view yields as a core component of value. Senator Cynthia Lummis similarly emphasized the urgency of the bill and its bipartisan support.
