Coinbase CEO Brian Armstrong has likened the Digital Asset Market Clarity Act (DAMCA) to a “freight train,” according to Cointelegraph. He says the legislation is gaining strong backing from both Republicans and Democrats, marking a rare moment of unity in U.S. politics. The bill aims to finally bring clear, consistent rules to an industry that has long operated in uncertainty.
What the Bill Aims to Do
The Digital Asset Market Clarity Act seeks to clearly define how different types of crypto assets should be regulated.
- Securities would fall under the U.S. Securities and Exchange Commission (SEC).
- Commodities would be handled by the Commodity Futures Trading Commission (CFTC).
This division of responsibility could eliminate years of confusion that have often led to lawsuits and regulatory clashes. It also promises to give innovators confidence by setting rules before they launch new projects, reducing the risk of sudden legal challenges.
Why Armstrong Is Confident
By calling the bill a “freight train,” Armstrong signaled his belief that momentum is unstoppable. Bipartisan support shows lawmakers on both sides recognize crypto’s importance to the U.S. economy.
Armstrong has repeatedly warned that the U.S. is falling behind global competitors like the U.K., Singapore, and the UAE—countries that already have clear regulatory frameworks. He believes DAMCA could help the U.S. catch up and remain competitive in digital innovation.
Protecting Builders and Innovators
A central goal of DAMCA is protecting developers. Many crypto builders feel trapped by the risk of unclear laws, which could penalize them after their projects are live. By providing a clear compliance roadmap, the bill could help startups grow in the U.S. instead of moving overseas. It may also give larger companies the confidence to expand their presence in the sector.
Impact on Investors
For investors, regulatory clarity could build trust and reduce risk. Institutional players have often avoided crypto due to fear of sudden enforcement actions. A consistent legal framework may encourage more traditional capital to enter the market, while also making it easier for exchanges and firms to plan long-term.
Challenges Ahead
Despite the progress, hurdles remain. Lawmakers still need to finalize how authority will be split between the SEC and CFTC, and address questions around stablecoins, DeFi, and emerging asset types.
Still, Armstrong sees the mix of industry momentum and bipartisan interest as a sign that DAMCA has a strong chance of moving forward.
Why It Matters
If passed, the Digital Asset Market Clarity Act could reshape the future of crypto in the U.S.—offering legal certainty, protecting innovation, attracting investment, and helping America reclaim its spot as a global leader in digital finance.
For years, the crypto community has asked for one thing above all: clarity. With DAMCA gaining traction, that goal may finally be within reach.
