Coinbase Criticizes CLARITY Act
- Coinbase criticizes CLARITY Act for high disclosure thresholds.
- The Act may drive crypto projects out of the U.S.
- Affects crypto listings and early-stage developers.
On May 29, 2025, Chairman French Hill introduced the CLARITY Act, alarming Coinbase’s Karaca Calvert over high disclosure thresholds, potentially driving U.S. crypto projects abroad.
This matter holds significant market relevance, impacting crypto listing, issuance, and international competitiveness, particularly for early-stage developers facing high compliance expenses.
Coinbase’s Concerns Over the CLARITY Act
Karaca Calvert, Head of U.S. Policy at Coinbase, expressed serious concerns over the CLARITY Act’s higher disclosure thresholds compared to global standards. She warned that such requirements might discourage American crypto innovation.
French Hill introduced the CLARITY Act of 2025, granting the CFTC exclusive jurisdiction over digital commodity markets. Coinbase’s critique centers on potential harm to domestic innovation due to compliance costs.
Calvert stressed, “The suggested framework would put off American crypto innovation. Disclosure requirements are much higher than those under MiCA in Europe.” Source
Impact on Crypto Projects and Developers
Compliance requirements are expected to impact early-stage developers significantly. These could drive crypto projects abroad, according to Coinbase. NASAA warns of legal ambiguities the Act could create, potentially stifling market development and stressing the need for balanced regulatory frameworks.
Experts emphasize that treating assets without ownership rights as commodities under CFTC jurisdiction aligns better with current business models. This legislation impacts crypto asset issuance, public sales, and market entry.
Senate Discussions and Future Legislation
Tim Scott and Cynthia Lummis’s Senate discussion draft builds on this legislation. While aiming to tighten regulations, the CLARITY Act might unintentionally constrain technological growth. Financial stakeholders voice concern over potentially stifling market development.
Senators discuss digital asset market structure framework, highlighting the need for actionable regulatory frameworks that do not inhibit innovation.
