Coinbase policy chief says WSJ criticism of CLARITY Act lacks support

Coinbase Chief Policy Officer Faryar Shirzad criticized a Wall Street Journal editorial on the CLARITY Act as lacking support, saying on X the piece repeated banking-sector arguments and misstated issues related to stablecoins and DeFi. Shirzad said stablecoin rewards under the CLARITY Act would face multiple restrictions and be tied to user activity. Shirzad added there is no evidence to support claims that stablecoins would drive deposit outflows from banks, and said three independent studies, including a report by the White House Council of Economic Advisers, had examined the issue. Shirzad said stablecoins and bank deposits have grown together for years. Shirzad also said the CLARITY Act would not grant criminal immunity to DeFi. Instead, the bill would draw a clear line between writing code and acting as a financial intermediary, while fraud, sanctions violations and money laundering would remain punishable. Shirzad urged the Senate to pass the CLARITY Act, saying the U.S. needs durable federal-level regulation.