- Indefinite postponement: Senate Banking Committee delays CLARITY Act markup with no new date set after last-minute changes.
- Coinbase pulls support: Exchange opposes provisions banning stablecoin rewards and restricting SEC flexibility.
- Focus shifts to housing: Committee pivots to Trump administration housing priorities amid stalled crypto talks.
- Agriculture Committee contrast: Proceeds with its version, including DeFi protections, scheduling markup next week.
- Bipartisan hurdles: Full passage requires Democratic support amid consumer protection and conflict concerns.
The U.S. Senate’s push for comprehensive cryptocurrency market structure legislation has encountered a major setback, with the Banking Committee indefinitely postponing its markup of the CLARITY Act following Coinbase’s abrupt withdrawal of support.
Last week, a scheduled hearing to amend and vote on the bill was canceled at the last minute. Coinbase cited fatal flaws in the draft, including bans on customer rewards for holding stablecoins and limitations on the Securities and Exchange Commission’s exemptive authority, according to VP of U.S. Policy Kara Calvert.
CEO Brian Armstrong reinforced the position on X, declaring “we’d rather have no bill than a bad bill” while highlighting issues with tokenized securities, DeFi treatment, and stablecoin provisions. The exchange’s stance, combined with ongoing negotiations, led the committee to shift focus to housing affordability legislation aligned with Trump administration priorities.
In contrast, the Senate Agriculture Committee released its version of the market structure bill on January 22, incorporating protections for decentralized finance (DeFi) protocols and noncustodial developers. The bill expands Commodity Futures Trading Commission oversight over digital commodities like Bitcoin and Ethereum, with a markup scheduled for next Tuesday.
“God bless the agriculture committee because they are trying to move this forward despite knowing that they really, in reality, do not have the support that they need,” noted Saga CEO Rebecca Liao in comments to industry observers.
Industry sources indicate the Banking Committee’s delay could last weeks, raising concerns about momentum loss. Democrats have expressed reservations over consumer protections in DeFi and potential conflicts tied to President Trump’s family crypto ventures. Achieving the 60 votes needed for Senate passage remains challenging without broader bipartisan backing.
Despite the stall, optimism persists in some quarters. President Trump, at Davos, voiced hopes to sign crypto legislation “very soon.” A reconciled bill could provide long-sought regulatory clarity between the SEC and CFTC, but risks include inadequate on-chain oversight and resource strains on regulators.
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