Coinbase CEO: Clarity bill will prevent FTX incident from happening again

In comparison, Coinbase CEO Brian Armstrong said that the US cryptocurrency Clarity Act will help prevent similar FTX crashes from happening again. Armstrong emphasized that by passing a clear regulatory framework, the Act can improve market transparency and investor protection.

The Clarity Act aims to provide a clearer regulatory definition for digital assets, differentiate between securities and commodity attributes, and strengthen exchange compliance requirements. The industry generally believes that such legislation is expected to reduce systemic risks and promote the development of the crypto industry's compliance in the US.