Coinbase CEO Brian Armstrong has recently voiced his anticipation for a revision of a cryptocurrency market structure bill, currently under the US Senate's consideration, within the coming weeks. This comes shortly after Armstrong announced that Coinbase would not support the existing version of the legislation.
In a CNBC interview conducted at the US Capitol, Armstrong elaborated on his company's stance. Following a social media post on Wednesday, he revealed Coinbase's withdrawal of support for the CLARITY Act. This legislative proposal aims to shape the digital asset market's framework. The US Senate Banking Committee had planned a markup session for the bill on Thursday, but it was postponed after Armstrong's announcement.
Armstrong explained, "We developed this concern that if [the bill] went into a markup, the only way to edit some of that base text would have been through an amendment, and amendments had already been submitted." He emphasized the potential negative impact on American consumers if the bill proceeded with unresolved issues. "I think we've got a chance to do a new draft, and hopefully get into a markup in a few weeks," he added.
Initially, Republican leaders in the US House of Representatives and Senate anticipated finalizing the CLARITY Act by 2026. However, the bill has faced criticism from various industry leaders, financial institutions, and experts, particularly regarding its provisions on decentralized finance, stablecoin interest, and regulatory authority distribution between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Cody Carbone, CEO of The Digital Chamber, a crypto advocacy group, stressed the urgency of advancing the CLARITY Act. He told Cointelegraph, "Inaction is unacceptable. We cannot afford to walk away from the table at a moment when clarity is within reach. Market structure must move forward, and the only path to longstanding policy is getting back to the negotiating table and finishing the job."
Senator Tim Scott, chair of the Banking Committee, described the markup delay as a "brief pause" and assured that bipartisan discussions were ongoing. The Senate is scheduled for a state work period next week, potentially delaying any markup to late January.
Meanwhile, the Senate Agriculture Committee, which is also working on a version of the market structure bill, plans to release its draft legislation on January 21, with a markup hearing slated for January 27. As of now, Committee Chair John Boozman has not indicated any changes to this schedule.