WASHINGTON — The Senate Banking Committee postponed a planned vote on the CLARITY Act after sharp pushback from a leading cryptocurrency company.
The markup session was removed from the committee’s schedule Thursday after Coinbase Chief Executive Brian Armstrong said the exchange could no longer support the current draft.
As the CU Daily reported here, traditional financial institutions have said giving crypto firms the ability to pay yields on deposits could lead to as much as $6.6 trillion flowing out of banks, credit unions and other providers.
Armstrong’s public withdrawal of support “after reviewing the Senate Banking Committee’s draft” heightened Republicans’ and Democrats’ concern about the legislation’s prospects, prompting Committee Chairman Sen. Tim Scott (R-SC) to delay the vote. Proponents had hoped to clear a path toward final Senate consideration this month.
What Proponents Say Bill Will Do
The CLARITY Act — formally the Digital Asset Market Clarity Act of 2025 — is intended to provide the first comprehensive federal framework to define how digital assets such as cryptocurrencies are regulated, including whether tokens should be treated as securities or commodities and which federal agencies should oversee them.
Supporters say it would bring long-sought regulatory clarity to the sector.
‘Deep Divisions’
But Coinbase’s opposition indicates there are some deep divisions over the bill’s details, particularly provisions that critics say could curtail innovation in decentralized finance and restrict stablecoin activities, according to multiple media reports. Armstrong and others warned that, as drafted, the legislation could leave the industry “materially worse than the current status quo.”
Senate leaders have not announced a new date for the markup, signaling continued negotiations among lawmakers and industry stakeholders.
The hold-up also postponed a parallel effort in the Senate Agriculture Committee on digital asset regulation.
The House has already passed its version of the CLARITY Act.
