Coinbase Policy Chief Faryar Shirzad: Final Text of CLARITY Act Reward Provisions Released
Faryar Shirzad, Chief Policy Officer at Coinbase, stated that the final text regarding rewards in the CLARITY Act has been made public. The industry reached a compromise through long-term lobbying, resulting in more restrictions for banks while protecting the reward rights of U.S. users based on actual use of crypto platforms.
He emphasized that previous debates were largely based on imagined risks rather than the actual functioning of cryptocurrencies.
Market Mechanism: The compromise on the CLARITY Act reward provisions reduces regulatory uncertainty, directing funds towards compliant crypto platforms and DeFi projects, thereby enhancing the U.S.'s competitiveness in financial innovation and national security.
Source: Public Information
ABAB AI Insight
Faryar Shirzad previously led Coinbase's communications with regulators, and the compromise on the CLARITY Act reward provisions reflects the results of long negotiations between the industry and banks, the Treasury, and the White House, protecting reward mechanisms in real-use scenarios.
On the capital pathway, the clarification of provisions reduces compliance costs, allowing platforms like Coinbase to continue expanding rewards and loyalty programs, while also paving the way for broader topics such as token classification, DeFi, and tokenization, advancing the U.S. crypto legislative process.
Similar to the EU's MiCA or Singapore's crypto framework, the U.S. is currently at a critical stage of transitioning from fragmented federal crypto regulation to a unified framework.
Structural Judgment: Essentially a regulatory change, the CLARITY Act balances banks' risk concerns with the industry's innovation needs through compromise, distinguishing between genuine use rewards and potential abuse scenarios, providing a legal foundation for the U.S. to maintain its leading position in global fintech competition.