Coinbase CEO: crypto regulation is coming regardless

Coinbase CEO Brian Armstrong expects the US crypto sector to receive more regulatory clarity after 15 September, regardless of whether the CLARITY Act passes the Senate. The bill, which is intended to set out the powers of the SEC and the CFTC over digital assets, receives broad support from crypto companies, enforcement agencies and banks. However, securing the required 60 votes remains the main hurdle.

In brief:

• Armstrong says the CLARITY Act is close to sufficient Senate support, but that even without the bill regulation is advancing via the SEC and CFTC.
• The crucial Senate vote is scheduled for 15 September, requiring 60 votes, with Democratic support essential.
• Grayscale head of research Zach Pandl points to regulatory progress already underway in areas such as stablecoins, tokenisation and perpetual futures.

Senate vote on 15 September as a turning point

The CLARITY Act is bipartisan legislation intended to form a comprehensive regulatory framework for the US crypto market. On 15 September, a procedural vote is scheduled: a so-called cloture vote, in which 60 senators must agree to open debate on the Senate floor. Because Republicans currently hold 53 seats, Democratic support is essential.

Armstrong told the CNBC programme Squawk Box Asia that the talks he is holding are encouraging. The main outstanding issue concerns ethics provisions in the bill. Democratic Senator Ruben Gallego of Arizona said last month during the Wyoming Blockchain Symposium that 60 votes are achievable if the ethics rules are properly worked out. According to CNBC, Armstrong said a solution on this point is already close.

Should the bill nevertheless fail, Armstrong does not see that as a disaster. “If it is not adopted, that is also a good outcome, because the SEC and the CFTC have indicated they are ready to publish rules,” he said. Regulatory clarity will then still come via that route.

Regulation advances even without a new law

Zach Pandl, head of research at Grayscale, shares that view. According to him, the regulatory landscape for crypto is already becoming clearer, even without the CLARITY Act. He points to the GENIUS Act, which has already established a federal framework for payment stablecoins, and to SEC proposals on token issuance and the tokenisation of securities. The CFTC has additionally opened regulated US routes for perpetual futures via platforms such as Kalshi and Coinbase.

Pandl does state that only Congress can establish a durable and complete division of responsibilities between the SEC and the CFTC. But the absence of the CLARITY Act would not stop broader regulatory progress.

Armstrong described possible approval of the bill as a “regulatory tick” that could attract institutional capital and pave the way for products such as tokenised stocks in the US. Prediction markets currently estimate the chance of actual entry into force in 2026 as low, due to policy differences and a busy legislative agenda.

Coinbase itself under pressure

Meanwhile, Coinbase as a company faces its own challenges. Revenue fell in the second quarter to $1.2 billion, compared with $1.5 billion a year earlier. The net loss amounted to $359.5 million, while the company recorded a profit of $1.43 billion a year earlier. It was the third consecutive quarter in which Coinbase missed analysts’ expectations.

Armstrong attributes part of those disappointing results to the decline in crypto trading, which he said was lower over the past year. About half of revenue comes from trading activities. The company is working on diversification, including through stablecoins, institutional custody and an expansion into markets such as equities and currencies. Coinbase shares are down more than 22% this year.