The crypto sector has split on the Clarity Act, a U.S. bill designed to regulate digital assets, jeopardizing its path before the midterm elections. The Act’s prospects further dimmed as Coinbase CEO Brian Armstrong withdrew his support, causing a stall in the Senate this week. With Coinbase’s withdrawal, regulators and market participants face renewed uncertainty over the framework governing digital assets, exchanges, and issuers.
The Act’s prospects depend on ongoing negotiations and election dynamics, potentially delaying clarity for the industry. Industry observers say the development highlights the contentious path to clear rules for crypto in the United States, affecting investor protections, compliance standards, and market structure. Analysts caution that timing for regulatory guidance could shift, influencing company strategies and investment sentiment heading into the elections.
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