Coinbase: 'Fatal flaws' found in Clarity bill... 'Cannot support'

Kara Calvert, Coinbase’s vice president for U.S. policy, said she had “found fatal flaws in the draft market structure bill for virtual assets (cryptocurrencies) (the Clarity bill)” and “concluded that, on the eve of the vote, we can no longer maintain our support.”

Calvert made the remarks in an interview with CoinDesk on the 22nd (local time). She noted that “it included a provision that effectively bans reward programs offered to customers who hold virtual asset balances,” adding that “blocking this ultimately leads to reduced access for ordinary U.S. consumers.”

She also took issue with the fact that less than 24 hours were given between the release of the amended bill and the vote. Calvert said there was “absolutely insufficient time to review and respond to the six amendments that materially worsen the bill.”

The dispute once again underscores the structural clash between the traditional financial sector and the virtual-asset industry. While traditional banks have called for regulation, arguing that stablecoin rewards compete with deposits, Calvert countered that “the premise itself is wrong.” She added that “a flawed bill can make things worse not only for the virtual-asset industry but also for ordinary consumers.”

Separately, she offered a positive assessment of a bill moving through the Senate Agriculture Committee. The draft includes provisions granting the Commodity Futures Trading Commission (CFTC) clear authority over the virtual-asset spot market.