Following significant concerns from the cryptocurrency sector, the U.S. Senate Banking Committee has postponed the markup of the CLARITY Act, initially scheduled for Thursday. This delay comes as discussions between the crypto industry and lawmakers continue to seek more favorable terms for the legislation.
Brian Armstrong, CEO of Coinbase, has refuted claims that the White House might withdraw its support for the bill, emphasizing a constructive relationship with the administration. Armstrong stated, “The White House has been super constructive here,” while also acknowledging ongoing negotiations with banks as part of a cooperative effort.
Coinbase’s withdrawal of support for the CLARITY Act on Wednesday was driven by fears that the bill could undermine the decentralized finance (DeFi) sector and restrict tokenized stock trading. Armstrong described the current provisions as “catastrophic” for consumers and expressed a preference for no legislation over a detrimental one. He anticipates a revised markup within a few weeks.
The crypto industry remains divided over the bill, particularly regarding the prohibition on sharing stablecoin yield with customers, which critics argue favors banking interests at the expense of innovation in financial technology.