Coinbase Chief Policy Officer Faryar Shirzad has publicly defended the CLARITY Act, criticizing The Wall Street Journal’s negative view of the bill and urging the U.S. Senate to pass it. In a post on X, Shirzad said the newspaper’s position was disappointing because, in his view, it abandoned free-market and competition principles in favor of regulatory barriers and echoed arguments from banking associations. He argued that the CLARITY Act already places multiple limits on stablecoin rewards and ties them to customer activity, while saying there is no evidence to support claims of deposit flight from banks. Shirzad added that three independent studies, including one from the White House Council of Economic Advisers, found no sign that stablecoin growth causes bank deposit outflows. He also rejected the idea that the bill would shield decentralized finance from accountability, saying it distinguishes between code developers and operators of financial intermediaries, while fraud, sanctions violations, and money laundering would still be subject to prosecution under the law. Shirzad said the United States needs durable federal rules for digital asset regulation.
Coinbase Chief Policy Officer Faryar Shirzad said in a post on X that he disagrees with The Wall Street Journal’s criticism of the CLARITY Act and called on the U.S. Senate to approve the bill.
Shirzad said the Journal’s stance was disappointing, arguing that it had given up on free-market and competition principles in favor of defending regulatory barriers. He also said the criticism repeated the views of banking associations.
On stablecoins, Shirzad said the CLARITY Act places multiple restrictions on stablecoin rewards and ties those rewards to customer activity. He added that there is currently no evidence supporting claims of “deposit flight.” According to Shirzad, three independent studies, including one from the White House Council of Economic Advisers, found that growth in stablecoins does not lead to a loss of bank deposits.
He also said the CLARITY Act does not create an exemption for criminal activity in decentralized finance, or DeFi. Instead, he said, the bill draws a distinction between code developers and operators of financial intermediaries, while fraud, sanctions violations, and money laundering would still remain subject to legal enforcement.
Shirzad said the United States needs long-term and stable federal rules for digital assets and urged the Senate to pass the CLARITY Act.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
