Coinbase's Chief Policy Officer on Why He Believes the Clarity Act Will Pass

In this episode of Unchained, host Laura Shin interviews Faryar Shirzad, Chief Policy Officer at Coinbase, about the ongoing legislative battle surrounding the Clarity Act and its implications for the U.S. crypto industry. Shirzad provides a detailed breakdown of the compromise reached on stablecoin yield restrictions, explaining how the new language allows rewards to be paid based on meaningful customer activity—such as trading or custodial actions—rather than mere holding. While the banks succeeded in limiting interest-like payments, Shirzad argues the outcome is a workable compromise that preserves critical adoption incentives. He emphasizes the broader significance of the Clarity Act, which aims to provide comprehensive regulatory clarity for blockchain-based applications, developer protections, and the integration of tokenized financial instruments into the U.S. economy. Despite lingering concerns over the ethics provision and potential legal challenges, Shirzad remains confident the bill will pass by the July 4th deadline, citing strong bipartisan support and high-level political engagement. Shirzad also addresses the long-term vision for crypto, arguing that it’s not a niche subculture but the future of finance. He dismisses the idea that the industry opposes regulation, stressing that clear rules are essential to combat bad actors and foster innovation. Even if the Clarity Act fails to pass this year, he believes significant progress will continue through agency rulemaking. Looking ahead, Coinbase’s policy focus will shift to tax clarity, ongoing regulatory rulemaking, and global expansion. The episode concludes with a strong message: despite political hurdles, the U.S. is on a path toward becoming a global leader in crypto innovation through thoughtful, durable legislation.