A key Senate vote on the CLARITY Act was postponed after late-night policy debate and industry pushback. Coinbase withdrew support over privacy and market concerns, though Senate Banking Chairman Tim Scott says the landmark crypto bill remains on track to pass eventually. Blockchain leaders and investors are watching closely as the bill’s fate could reshape how the industry is regulated.
Coinbase CEO Brian Armstrong argued the legislation could ban tokenized equities, restrict DeFi, expand government access to financial data, weaken the CFTC in favor of the SEC and eliminate stablecoin rewards, potentially letting banks shut out crypto competition. He publicly withdrew Coinbase’s support for the CLARITY Act, signaling heightened industry caution and a broader push for tighter privacy protections.
The White House has reiterated its commitment to working with Scott, the Senate Banking Committee, and industry stakeholders to advance bipartisan crypto market structure legislation as soon as possible. Supporters emphasize that federal intervention remains critical for consumer protection and a clear regulatory framework, while critics warn about overreach and privacy implications. The GENIUS Act, signed into law last year, frames the continuing discussions around how to structure crypto regulation, with the market structure bill viewed as central to that framework.
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