Key facts
- Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong are advocating for the Clarity Act's passage.
- Senate Majority Leader John Thune intends to schedule a full Senate vote on the crypto bill next week.
- The Clarity Act aims to provide regulatory clarity and consumer protection in the crypto market.
- Several Democratic senators have expressed opposition to certain provisions within the bill.
- The likelihood of the Clarity Act passing this year has recently declined.
Ripple CEO Brad Garlinghouse and Coinbase CEO Brian Armstrong have intensified calls for the passage of the Clarity Act, a proposed piece of legislation aimed at providing regulatory clarity for the cryptocurrency industry in the United States. The push comes as Senate Majority Leader John Thune has indicated plans to bring the bill to a full Senate floor vote next week, even in the absence of broad bipartisan consensus.
Garlinghouse, through posts on X, emphasized the need for the Clarity Act, stating that "perfect can’t be the enemy of good." He, along with Ripple CLO Stuart Alderoty, framed the bill as a consumer protection measure that includes robust Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols, as well as tools for law enforcement. Alderoty warned that without clear standards, consumers are left vulnerable to exploitation under the current regulatory status quo.
Coinbase CEO Brian Armstrong echoed these sentiments, asserting that the bill is prepared for a Senate vote and represents a "true bipartisan compromise." Armstrong argued that a lack of comprehensive federal regulation leaves customers exposed, referencing the collapse of FTX as an example. He also suggested that clear federal laws are essential for maintaining U.S. leadership in the burgeoning crypto industry, noting that a significant majority of American voters support such legislation.
However, the path forward for the Clarity Act faces challenges. Several Democratic senators, including Angela Alsobrooks, Booker, Cortez Masto, Gallego, Hickenlooper, Warner, and Warnock, have voiced opposition to specific aspects of the bill's latest text, particularly concerning ethics provisions, illicit finance, and conflicts of interest. This growing opposition has led to a decrease in the perceived likelihood of the bill's passage this year, with odds dropping significantly in a short period.