Coinbase CEO Brian Armstrong has warned that the United States is a major outlier compared to other G20 nations, many of which already have cryptocurrency regulations in place, with the UK passing comprehensive rules earlier this year. Armstrong is urging the Senate to pass the CLARITY Act on September 15, a bill that would define the roles of the SEC and CFTC. Approval could unlock institutional growth, while failure risks driving talent and liquidity offshore, according to Armstrong. The U.S. market has been losing global share since 2022.
Coinbase CEO Brian Armstrong is pressing Washington lawmakers, warning that the United States has become a laggard in crypto regulation as most G20 countries already have frameworks. The UK approved its broad regulation under the Financial Services and Markets Act months ago, placing oversight with the FCA.
Armstrong is calling on the Senate to pass the CLARITY Act on September 15. The bill would define the jurisdictional boundaries between the SEC and CFTC, enabling exchanges, brokers, and token issuers to register federally.
The proposed legislation aims to replace the current enforcement-based model, which has driven liquidity and developers to offshore jurisdictions with clearer compliance guidelines. As CoinMarketCap data shows, the U.S. market has been losing its global share since 2022.
Uncertainty is the main hurdle for U.S. market expansion, cited by institutional investors, ETF issuers, stablecoin providers like Circle and Tether, and Layer 1 ecosystems including Ethereum and Solana. Clearly defined rules could allow banks to custody digital assets and enable on-chain settlements, according to Bloomberg.
The UK regulation under the Financial Services and Markets Act offers an alternative model that protects consumers while allowing innovation, according to Reuters. If the CLARITY bill passes the Senate on September 15, attention will shift to House-Senate reconciliation and implementation into 2026.
Should the legislative effort fail, the U.S. could be left behind as other regions define global standards for digital assets. Armstrong described the U.S. as a major outlier, noting that most G20 nations already have regulatory frameworks in place.
