Armstrong: Stablecoin and RWA Expansion Continues Despite Bill Delay

[Mexico City = Shim Young-jae, Correspondent] The processing of the CLARITY Act, a bill regarding the market structure of digital assets (cryptocurrencies) in the U.S. Senate, has been postponed to September. However, Brian Armstrong, CEO of Coinbase, emphasized that the expansion of the digital asset industry and technological advancements continue. He pointed to the increased use of stablecoins and the growth of the tokenization market for real-world assets (RWA), stating that market momentum is strengthening regardless of the legislative schedule in Congress.

"Momentum Grows Regardless of Congressional Schedule"

According to CoinGape on the 7th (local time), CEO Armstrong expressed disappointment that the U.S. Senate was unable to advance the CLARITY Act this week, but noted that the overall development of the digital asset industry continues.

Armstrong explained that the use of stablecoins by companies is expanding as regulatory agencies provide clearer standards. He also mentioned that the market for perpetual futures and tokenized real-world assets is growing, and the number of consumers using digital assets is increasing.

He stated, "The momentum surrounding this technology continues to grow regardless of the congressional schedule."

The Senate's processing of the CLARITY Act has been postponed until after the summer recess. According to CoinGape, Senate Republican Leader John Thune has stated that the bill will be prioritized once the members return.

Thune indicated that they are "preparing to address the bill as soon as they return." As a result, the review of the bill is expected to resume in September.

CFTC-Centric 'Digital Commodity' Regulation... Establishing Registration System for Exchanges and Brokers

The CLARITY Act aims to establish a federal regulatory framework for U.S. digital assets and delineate the supervisory areas of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

According to CoinGape, the latest draft of the Senate bill includes provisions for a supervisory framework centered around the CFTC for digital commodities.

It will create registration categories for exchanges, brokers, dealers, and advisors, and establish rules applicable to qualified digital asset custodians.

The bill also clarifies the authority for banks and credit unions to utilize digital assets and blockchain technology in the course of performing their previously allowed functions.

Regulations regarding stablecoins are also a major issue.

According to CoinGape, the draft generally restricts interest or returns paid for simply holding stablecoins for payment purposes.

However, rewards linked to actual activities such as payments, remittances, liquidity provision, staking, and loyalty programs may be allowed, provided they do not follow a structure similar to bank deposit interest.

This indicates that the debate surrounding the permissible scope of stablecoin reward programs is not merely about 'allowing or prohibiting rewards' but centers on how to define the nature of rewards and the conditions for payment.

Conflicts of Interest Between Public Officials and Digital Asset Businesses Also a Point of Contention... Sunset Clause in January 2029

Another unresolved issue in Senate negotiations is the ethics provision addressing conflicts of interest between public officials and digital asset businesses.

According to CoinGape, the White House and senators are currently negotiating the ethical language in the CLARITY Act.

The amended bill includes provisions that restrict sitting public officials and their spouses from issuing or sponsoring digital assets in exchange for compensation. It also includes measures to limit the listing of tokens issued in violation of such regulations by intermediaries.

However, it continues to allow public officials to hold digital assets for investment purposes as long as they comply with existing disclosure requirements. According to CoinGape, the ethical regulation includes a sunset clause that will expire in January 2029.

The ethics provision is currently one of the contentious issues delaying Senate processing.

Democrats are demanding additional safeguards, and the language surrounding former President Donald Trump's business interests in digital assets is also a subject of negotiation, CoinGape reported.

"Legislation Remains Important... Supporting Investment, Innovation, and Employment"

While emphasizing that the industry is growing regardless of the congressional schedule, CEO Armstrong did not indicate that a federal market structure law is unnecessary.

He stressed that Congress still plays a crucial role in establishing clear federal market structure rules.

CEO Armstrong stated that clear laws can support investment, innovation, and employment while providing stronger protections for consumers.

His argument has two facets. While the delay of the CLARITY Act does not halt the growth of stablecoins, tokenization, and the digital asset market, a clear regulatory framework from Congress is still needed to lay a long-term industrial foundation.

If the Senate resumes the review of the bill in September, the delineation of jurisdiction between the CFTC and SEC, as well as the issues of stablecoin rewards and public official ethics regulations, are expected to resurface as key points determining the bill's passage.

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