Analyst says CLARITY Act stall is positive for crypto markets

Market analyst Michaël van de Poppe said the failure of the CLARITY crypto market structure bill to advance in the US Congress is positive for crypto markets and the industry, a development he linked to Coinbase withdrawing support and concerns raised by Coinbase CEO Brian Armstrong.

Van de Poppe warned that overregulation would harm markets and “gut” decentralized finance (DeFi). He said, “I think if the bill were approved in its current form, it would have had a very bad impact on the markets in general. So, now, all the parties are aligned to continue the discussion.” He compared the process to the EU’s Markets in Crypto Assets (MiCA) rules, which required multiple negotiation rounds.

Armstrong listed issues with the latest bill version in an X post, including what he described as a “de facto ban” on tokenized stocks, government access to user records on DeFi platforms, and a prohibition on yield-bearing stablecoins. Independent reporter Eleanor Terrett reported the White House threatened to drop support after Coinbase withdrew backing; Armstrong denied that report and said negotiations to draft a version acceptable to the crypto industry and community banks are ongoing, adding the White House has been “super constructive.” Venture capitalist Nic Carter urged lawmakers and negotiators not to eliminate stablecoin yield.

Key Topics

Crypto, Clarity Act, Coinbase, Brian Armstrong, Defi, Mica