Coinbase CEO Says CLARITY Act Would Prevent Another FTX-Style Collapse

Brian Armstrong, chief executive officer of Coinbase, said the CLARITY Act would strengthen protections for cryptocurrency investors and help prevent another FTX-style collapse.

CBS News reported on August 20 that Armstrong said the bill would create a clearer regulatory framework for the US cryptocurrency market and bolster consumer safeguards.

“It’s not clear today which rules apply, and ordinary Americans are being harmed,” Armstrong said. “This bill puts a range of consumer protections in place.”

He added that the CLARITY Act would strengthen enforcement tools to combat illegal activity and help establish an institutional foundation for the crypto industry in the US. FTX filed for bankruptcy in 2022 after allegations emerged that customer funds had been misused.