Coinbase Says U.S. Crypto Rules Are Coming And Even A Failed Senate Vote May Not Stop Them

Coinbase CEO Brian Armstrong said the U.S. crypto industry is headed toward clearer federal rules regardless of whether the Senate passes the CLARITY Act, pointing to work already underway at the Securities and Exchange Commission and Commodity Futures Trading Commission.

Armstrong said he believes the legislation has enough support to move forward and that senators he has spoken with are on board. The Senate is scheduled to hold a key procedural vote on the measure Sept. 15, with negotiations continuing over ethics provisions and other unresolved issues.

"Frankly, if it doesn't pass, it's also going to be a good outcome because the SEC and the CFTC have said that they're ready to publish rulemaking, and we're going to get regulatory clarity one way or another on the 15th or the day or two after," Armstrong told CNBC.

The Digital Asset Market CLARITY Act would establish a federal market structure for digital assets and clarify the respective roles of the SEC and CFTC. The House passed the legislation in July 2025, and the Senate Banking Committee advanced it in May by a 15-9 vote.

Sen. Cynthia Lummis, R-Wyo., released updated legislation in July combining work by the Senate Banking and Agriculture committees. The revised measure is intended to establish rules governing digital asset markets and their federal oversight.

Getting enough support to advance the legislation on the Senate floor remains a hurdle. Sen. Ruben Gallego, D-Ariz., has said reaching 60 votes would require agreement on ethics provisions as well as other outstanding issues, including stablecoin yield and measures aimed at illicit financial activity.

Armstrong said negotiations over the ethics provisions were continuing but appeared "very close to a solution." He described passage of the legislation as a "regulatory checkbox" that could help clear the way for greater institutional participation and products including tokenized equities in the United States. "It'd be a big milestone," Armstrong added.

Federal regulators have already taken steps to define how existing laws apply to digital assets. In March, the SEC issued an interpretation explaining how federal securities laws apply to several types of crypto assets and transactions, with the CFTC providing accompanying guidance on its administration of the Commodity Exchange Act.

The interpretation addressed digital commodities, collectibles, stablecoins and other crypto assets and provided guidance on activities including staking, airdrops and protocol mining. It also sought to clarify when a crypto asset may be subject to an investment contract under federal securities laws.

The SEC followed that action in August with a proposal for Regulation Crypto Assets, which would create a tailored offering framework for certain investment contracts involving crypto assets. The proposal includes exemptions for some offerings and a conditional safe harbor addressing when an asset would no longer be subject to an investment contract.

SEC Chairman Paul Atkins said when the proposal was released that congressional legislation remained necessary to establish durable rules for the industry and that the commission continued to support passage of the CLARITY Act.

Coinbase has been a prominent supporter of the legislation as it expands beyond its core crypto spot-trading business. Armstrong said roughly half of the company's revenue comes from trading, while its other businesses include stablecoins and institutional custody.

The company has been adding traditional financial products as part of what it calls its "Everything Exchange" strategy. Coinbase launched stock perpetual futures for eligible customers outside the United States in March and has since expanded its international derivatives and equities offerings.

In August, Coinbase began offering nearly 4,000 U.S. stocks to customers in the United Kingdom, while professional investors there are gaining access to futures, perpetuals and options across crypto, commodities, equities and foreign exchange.

The expansion comes as weaker crypto spot activity puts pressure on part of Coinbase's business. The company reported second-quarter revenue of about $1.2 billion and a net loss of roughly $360 million, while saying its share of crypto trading volume reached a record 10.3%.

Armstrong said Coinbase has also expanded internationally during periods when the U.S. regulatory environment was less favorable, including building operations in Singapore and the United Arab Emirates.

"We basically just try to grow when we have windows and we try to bide our time in the areas where we're sensing hostility," he said.

The company has continued adding regulated operations overseas even as the U.S. policy environment shifts. Coinbase received authorization in August to establish an international tokenization hub in Abu Dhabi, while Singapore remains one of its main bases in Asia.

The Senate vote next week will determine whether lawmakers can move the broader market-structure legislation forward. Armstrong said he expects clearer rules for the industry either through the CLARITY Act or through regulatory action by the SEC and CFTC.