Senator Cynthia Lummis has indicated that the US Senate Banking Committee might postpone its hearing on the crypto market structure legislation, as reported by Bloomberg. The delay comes after Coinbase retracted its support for the bill, citing disagreements over certain provisions.
The CLARITY Act, which has been a subject of intense discussions, is facing hurdles due to differing views between banking and crypto stakeholders, especially on DeFi and stablecoin reward provisions. This discord is threatening to stall the bill's progress.
On Wednesday, Bloomberg's Steven Dennis shared on social media that Senator Lummis suggested the markup be postponed. Although the final decision rests with Banking Chair Tim Scott, Lummis has recommended a temporary halt. The markup was initially set for Thursday at 10:00 am Eastern Time.
Attempts to contact Scott's office for a statement on the matter have not yet been successful.
The withdrawal of support by Coinbase is a significant setback. Coinbase's CEO, Brian Armstrong, criticized the current draft of the bill, highlighting issues such as the elimination of stablecoin rewards, restrictions on tokenized stocks, excessive government access to financial records, and reduced authority for the US commodities regulator over the crypto markets.
Armstrong expressed that the proposed changes could be more detrimental than the current regulatory environment, stating, "We’d rather have no bill than a bad bill." He hopes for a revised draft that better serves the industry's needs.
This story is still unfolding, and updates will be provided as new information emerges. The complexities surrounding this legislation underscore the ongoing challenges in aligning regulatory frameworks with the rapidly evolving crypto industry.