Coinbase CEO Urges Congress to Pass Stablecoin and Market Structure Bills Before August
Coinbase CEO Brian Armstrong is calling on congress to swiftly advance its stablecoin and market structure bills amidst the momentum surrounding the FIT21 legislation. Armstrong hopes to see both bills passed before August to provide clarity and regulatory framework for digital assets, particularly cryptocurrencies.
In a recent statement, Armstrong emphasized the importance of immediate action from congress in advancing the draft legislations. He believes that the momentum generated by the discussion surrounding FIT21 in the House will push the bill forward and bring much-needed regulatory clarity to the crypto industry.
Understanding FIT21 and Its Impact
The Financial Innovation and Technology for the 21st Century Act, also known as FIT21, aims to clarify the regulatory framework for digital assets, specifically cryptocurrencies. The bill seeks to determine whether the SEC or CFTC has jurisdiction over crypto assets, providing much-needed clarity for market participants.
Although FIT21 was initially rejected in May 2024 under the Biden administration, House lawmakers have revived it through the release of a discussion draft of a market structure bill. This successor to FIT21 aims to establish clear boundaries and regulations for the crypto market.
Armstrong stated, “Both chambers need to act now if we hope to pass comprehensive legislation into law before August.” The urgency to pass these bills stems from the need to provide regulatory certainty and foster innovation in the rapidly evolving crypto space.
The GENIUS Act and Senate Debate
Currently, the Senate is deliberating on the GENIUS Act, a bill designed to bring legal clarity to the stablecoin market, which has grown to over $240 billion in market value. Leading stablecoins like Tether (USDT) and USD Coin (USDC) are driving this growth, highlighting the need for regulatory oversight and safeguards.
Despite bipartisan support initially, the GENIUS Act faced opposition from nine Senate Democrats concerned about anti-money laundering and national security safeguards. The bill requires at least 60 votes to advance to the next phase of legislation, highlighting the challenges of regulatory reform in the crypto space.
Industry Predictions and White House Initiatives
Industry figures like Dennis Porter and Senator Tim Scott have predicted that crypto market legislation will be formalized into law by August 2025. The White House has two stablecoin bills in progress, the STABLE Act and the GENIUS Act, with the latter making significant progress.
The STABLE Act, which passed through the House Financial Services Committee markup hearing, still needs to navigate through the House of Representatives and the Senate before becoming law. Coinbase, a leading crypto exchange, is expected to benefit from stablecoin regulations due to its compliance-focused approach and lack of strong ecosystem ties.
As the crypto industry awaits regulatory clarity and guidance, the push for stablecoin and market structure legislation intensifies. The upcoming months will be crucial in shaping the regulatory landscape for digital assets and fostering innovation in the evolving crypto market.