2026-1-16 18:56 |
The U.S. Senate Banking Committee has postponed a planned markup of the long-awaited crypto market structure bill (the CLARITY Act), delaying what was expected to be a key step toward federal rules for digital assets.
The markup session, where lawmakers debate, amend, and vote to advance a bill, was pulled from the committee’s schedule with no new date announced. The delay follows Coinbase CEO Brian Armstrong’s sudden withdrawal of support, just hours before the session was set to begin.
“After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written,” Armstrong shared via X on Wednesday.
Senate Banking Committee Chair Tim Scott said in a statement the delay will allow for continued bipartisan negotiations and additional stakeholder input before moving forward. “I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” Reuters reported late Wednesday evening.
Coinbase’s issues with crypto market structure billThe immediate trigger for postponement was Coinbase’s public opposition for the Senate draft just hours before the scheduled markup.
After reviewing the Senate Banking draft text over the last 48hrs, Coinbase unfortunately can’t support the bill as written.
There are too many issues, including:
– A defacto ban on tokenized equities
– DeFi prohibitions, giving the government unlimited access to your financial…
Coinbase has been a key stakeholder in bill negotiations and has contributed millions to political action committees (PACs) to back candidates likely to support a pro-crypto agenda, Reuters noted.
Armstrong raised concerns that the bill could:
Create a de facto ban on tokenized equities Undermine DeFi and privacy protections Restrict stablecoin rewards and yield programs Shift too much authority from the CFTC to the SECHe followed up shortly after stating “I’m actually quite optimistic that we will get to the right outcome with continued effort. We will keep showing up and working with everyone to get there.”
Not everyone agrees with Armstrong’s assessment of the bill, as drafted.
Pushback on Coinbase’s stanceOne crypto insider who goes by the handle “echodatruth” presented some counterarguments, emphasizing Armstrong’s and Coinbase’s unique positioning as a public company.
“This isn’t really about being pro-crypto anymore, it’s about which crypto business model survives,” he said. “And to be fair, Brian isn’t speaking as ‘crypto.’ He’s speaking as the CEO of Coinbase, a public company with shareholders to answer to.”
He also poked holes in some of Armstrong’s claims, illustrating a current lack of consensus around some of the finer bill details.
“When he says tokenized equities are basically banned, are they? Or is it just saying: if it’s a stock, it has to follow stock rules? That doesn’t kill innovation. It kills shortcuts. When he says DeFi is being attacked and privacy is gone, but the bill literally protects self-custody and non-custodial software. What it does regulate are intermediaries with control.”
Prior to Coinbase’s public statement, the bill had broad albeit fragile industry support.
David Sacks responded to the Senate’s postponed markup by framing the pause as an opportunity rather than a setback. His message to the industry: stop fighting each other and close the deal.
“Passage of market structure legislation remains as close as it’s ever been,” Sacks wrote on X, quote-tweeting Senator Tim Scott’s announcement.
The statement comes as major players have publicly split over the bill’s current draft, with Coinbase opposing provisions on developer liability and stablecoin yields while Ripple, Circle, and a16z continue backing the legislation.
What the CLARITY Act is trying to doAt a high level, the market structure bill aims to establish a clear regulatory framework for digital assets, which has not existed to date. The current bill aims to
Clarify when digital assets are securities vs. commodities Assign clearer oversight roles to the SEC and CFTCSet registration and compliance rules for crypto exchanges Draw a line between DeFi software and regulated intermediaries Establish guardrails around stablecoins
It’s widely seen as Congress’s first serious attempt to replace years of enforcement-driven regulation with formal rules.
Big picture and what’s nextThe Senate’s decision to pause the crypto market structure markup reflects deeper disagreements over DeFi, stablecoins, and exchange power, not just legislative timing.
The delay slows regulatory clarity but avoids locking in rules that large parts of the industry see as flawed. The bill’s final shape, assuming it eventually passes, will define whether crypto in the U.S. evolves as open financial infrastructure or remains dominated by a handful of platforms.
In the near term, there will be no immediate markup as negotiations continue behind closed doors, and likely on a public stage as well. We can also expect more industry lobbying and revised draft language to emerge.
If and when consensus emerges and a strong version of the bill passes, it could create the first clear federal rules for digital assets, potentially unlocking institutional capital and accelerating adoption. But it’s hard to say how far we are from that outcome. As Armstrong told Reuters, “We’d rather have no bill than a bad bill” and he is “quite optimistic that we will get to the right outcome with continued effort.”
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