Delay Reflects Bill Complexity, Says Coinbase Strategist
John D’Agostino, head of strategy at Coinbase Institutional, addressed industry concerns over the pace of the Digital Asset Market CLARITY Act during a CNBC interview. He contrasted the CLARITY Act with the Genius Act, emphasizing that market structure legislation inherently deals with nuanced issues such as trading venue rules, reserve requirements and digital asset definitions. “I completely understand why this is taking longer,” D’Agostino remarked, noting that foundational frameworks require extensive stakeholder engagement and technical review.
The CLARITY Act aims to establish comprehensive federal market structure regulations for digital assets. Key provisions include registration requirements for trading platforms, custody standards for custodians, and definitions for token classification. The extended review process has drawn criticism amid calls for expedited passage, but D’Agostino argued that thorough deliberation will yield more durable regulatory outcomes.
Global Regulatory Developments Provide Momentum
D’Agostino pointed to parallel progress in international jurisdictions, including Europe’s MiCA framework and clarified guidelines in the United Arab Emirates. He cited comments from White House AI and crypto czar David Sacks, who indicated the possibility of a greenlight for the Act in January. “Once lawmakers can digest the implications, there will be a burning platform to finalize these rules,” D’Agostino said. He noted that the Genius Act, passed in July, dealt with limited scope issues, whereas the CLARITY Act addresses sweeping market microstructure concerns.
Impact on Crypto Investment Flows
Regulatory uncertainty has weighed on investment products, with CoinShares attributing $952 million in outflows to delays in digital asset market structure legislation. The outflows highlighted investor sensitivity to policy clarity. D’Agostino asserted that passage of comprehensive rules would restore confidence, facilitating capital formation and on-chain activity.
Veteran trader Peter Brandt commented that while the Act’s passage is necessary, its direct impact on Bitcoin price may be marginal. “Needed for sure, but not something that should redefine value,” Brandt told Cointelegraph. Industry stakeholders have emphasized that robust governance of digital asset markets is critical for sustainable growth.
Next Steps and Legislative Outlook
The bill’s progress through committee and floor votes will determine its timeline. Coinbase and other industry participants have engaged with lawmakers to refine draft language. Successful passage is expected to align US regulatory frameworks with global counterparts, supporting further institutional adoption and integration with TradFi systems.
Source: CNBC, CoinShares report.
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