Senate Banking Committee delays CLARITY Act vote amid industry opposition

The Senate Banking Committee delayed a planned vote on the CLARITY Act, Beincrypto reported. The postponement followed industry backlash and the late withdrawal of support from prominent crypto figures.

The 278-page bipartisan proposal was released Monday and had been set for a committee vote on Thursday, but was postponed Wednesday night after a late policy debate and the withdrawal of support from key industry players. Coinbase CEO Brian Armstrong said the company could no longer support the bill’s current version, arguing the draft "breaks key parts of market structure" and creates risks for tokenized equities, DeFi, stablecoins, and open crypto markets.

The bill still has backing from firms including Circle, Ripple, Kraken and a16z and from groups such as The Digital Chamber and Coin Center, but faces criticism that recent amendments concede too much to banks on stablecoin yield and tokenization. Some Democrats have objected to the absence of ethics provisions for senior government officials, including the President, and are seeking to close loopholes related to tokenization and national security; Senate Banking Committee Chair Tim Scott said in a social media post he remained optimistic, but ongoing political and industry disputes may significantly delay the timeline and leave it uncertain whether the bill will reach the President’s desk this year.

Key Topics

Crypto, Clarity Act, Senate Banking Committee, Coinbase, Brian Armstrong, Tim Scott