The Senate Banking Committee delayed a vote on cryptocurrency market structure legislation amid growing industry resistance.
The long-anticipated bill was postponed Wednesday night after a late policy debate, following prominent industry figures’ withdrawal of support for the CLARITY Act, prompting the committee to halt proceedings.
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Crypto Pushback Stalls Vote
The road to getting the CLARITY Act to the Senate has been one of great turbulence. Set for a vote by the Senate Banking Committee on Thursday, the bill has been delayed once again.
After an initial release of the 278-page bipartisan proposal on Monday, the bill has received significant pushback. On Wednesday, Coinbase CEO Brian Armstrong announced that the company could no longer support the bill’s current version.
Armstrong argued that the draft “breaks key parts of market structure” and creates risks for tokenized equities, DeFi, stablecoins, and open crypto markets.
In light of these setbacks, many began to wonder whether the CLARITY Act would even reach the President’s desk before the end of the year.
Looking past these complications, Senate Banking Committee Chair Tim Scott maintained optimism over the bill’s passage.
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So far, Coinbase has been the only major crypto player to oppose the current version of the bill. Nonetheless, it continues to face generalized friction.
Political Friction Threatens Crypto Bill Timeline
Despite broad opposition to the market structure legislation, the bill retained support from several major crypto stakeholders.
According to journalist Eleanor Terrett, the proposal has received backing from firms including Circle, Ripple, Kraken, and a16z. Non-profit organizations such as The Digital Chamber and Coin Center also supported the bill.
Even so, the legislation faces a difficult path forward.
Industry frustration has intensified amid concerns that recent amendments concede too much ground to banks and traditional finance, particularly around stablecoin yield and tokenization.
At the same time, some Democrats have raised objections over the absence of ethics provisions for senior government officials, including the President. Sources familiar with the discussions say Democrats are also seeking to close loopholes related to tokenization and national security.
Although early expectations suggested the bill could get passed by March, ongoing political and industry disputes may significantly delay that timeline.
Source: https://beincrypto.com/clarity-act-uncertain-path-after-senate-delay/
