As legislators propose a revised CLARITY Act, Coinbase is taking a firmer stance on crypto regulation in Washington. While the exchange acknowledges the importance of addressing token classification and innovation risk, it refuses to support the latest draft.
Instead, Coinbase is advocating for more comprehensive and transparent regulations that it believes would offer greater sector stability.
Why Coinbase is Holding Back Support
Coinbase has claimed in policy briefings and public statements that previous CLARITY-style ideas did not go far enough in defining what constitutes a security and what does not.
Although the current draft retains part of that framework, Coinbase believes it still depends too much on agency discretion and case-by-case decisions. The firm, which is currently embroiled in high-profile enforcement battles in American courts, is concerned about that.
Moreover, executives express a need for legislation that clearly distinguishes traditional securities regulations from those for decentralized networks and utility tokens. In order to make it difficult for a future administration to undo that line, they also want Congress, not just regulators, to enshrine it in legislation.
What Coinbase Wants Changed in the CLARITY Bill
Coinbase’s policy team has pushed for a bright‑line path that projects can follow to “exit” securities status once they reach sufficient decentralization. They argue that builders need predictable milestones, such as on‑chain distribution, governance dispersion, and code openness, that a statute would recognize. Without those milestones, teams may fear endless regulatory risk even when they no longer control a network.
The exchange is also calling for clearer guardrails around disclosures, listings, and secondary trading. It wants rules that let compliant exchanges list qualifying tokens without being treated as unregistered securities brokers every time a project changes hands. In its view, that is the only way U.S. platforms can compete with offshore venues that already operate under more tailored frameworks.
Coinbase has spent the past two years ramping up its lobbying, political donations, and public campaigns around crypto law. It has supported some bipartisan market structure bills, while sharply criticizing what it calls “regulation by enforcement” from existing agencies. Holding back support from this CLARITY draft fits that pattern of selective backing rather than blanket opposition.
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