Clarifying misunderstandings in the bill: Coinbase executives rage at WSJ for defending regulatory boundaries

According to WooFunai, Coinbase (COIN.US) Chief Policy Officer FaryarShirzad publicly refuted the “Wall Street Journal” editorial and fiercely defended the ongoing US stablecoin and digital asset regulatory framework — a clear law. Shirzad pointed out that the editorial seriously misinterpreted the core provisions of the bill on the stablecoin incentive mechanism, and he also made a systematic response to questions about the definition of decentralized finance (DeFi) legal liability, in an attempt to defend the original purpose of the legislation by clarifying the facts.

In a series of responses posted on the X platform, Shirzad first refuted the editorial's view that stablecoin rewards would cause large-scale outflows of bank deposits, thereby destabilizing the stability of the banking system. He clarified that the Clear Act imposes multiple and strict restrictions on such rewards, requiring that earnings must be linked to the actual behavior of users, and that speculation or simply generating returns is strictly prohibited, thus avoiding unfair competition with bank deposits.

Notably, Shirzad cited a number of studies, including the White House Economic Advisory Committee report and Coinbase's own data analysis, as empirical support. According to public information, these studies all show that judging from the historical situation, stablecoins and bank deposits showed a simultaneous development trend rather than mutually exclusive relationships.

This data directly refutes the banking community's concerns that stablecoins will erode traditional banking business, proving that the two are not a zero-sum game. The opinion of the banking industry quoted in the editorial was viewed by Shirzad as one-sided statement lacking an empirical foundation. The original purpose of the bill was to prevent systemic risks while encouraging innovation.

Another central point of contention is the definition of legal liability in DeFi agreements. Some Democratic members of the Senate and critics of the banking industry claim that a clear law would provide criminal immunity for DeFi agreements, and Shirzad firmly denies this. He clarified that the bill did not grant any immunity, but rather clarified the legal differences between writing and publishing protected code and acting as a financial intermediary subject to regulation. According to clear laws and regulations, fraud, acts that violate sanctions, and money laundering through DeFi platforms are still subject to prosecution.

This legal guidance is designed to ensure that malicious actors cannot use code as a cover to evade liability, while providing clear compliance boundaries for developers. This distinction is essential to promote technological innovation while ensuring that regulations are in place. It not only prevents a regulatory vacuum, but also avoids excessive regulation stifling innovation vitality. Shirzad stressed that the goal of the bill is to combat crime rather than protect illegal activities, and any attempt to use DeFi to carry out illegal operations will face legal sanctions.

The Clarification Act is an important attempt by the US to establish a unified federal regulatory framework for digital assets. Currently, the industry faces conflicting laws in various states and unclear guidelines at the federal level, which has led to huge uncertainty and hindered the development of innovation.

If passed, the bill will provide businesses with the necessary legal clarity to operate with confidence while also allowing consumers to use digital assets more safely. Shirzad's public rebuttal was not only a defense of the bill, but also a strategic move to shape public opinion. By directly responding to criticism from the Wall Street Journal and questions from the outside world, he hopes to correct misinformation and gain bipartisan support in the US Senate. The end result of this legislative effort will have a profound impact on the cryptocurrency market, financial institutions, and the entire economy. As the Clarification Act progresses in the National Assembly review process, the debate over its provisions is likely to become more intense. The policy director at Coinbase made it clear that the company sees the bill as a balanced solution that protects consumers, promotes innovation, and maintains financial stability. Whether the Senate will approve the bill remains to be seen, but discussions are far from over, marking a critical gaming period for Web3 regulation.