A U.S. Senate committee has postponed a debate on the Clarity Act, a bill aimed at establishing a regulatory framework for cryptocurrencies. The decision came hours after Coinbase CEO Brian Armstrong voiced strong opposition to the legislation, casting doubt on its future. Coinbase, a major player in the cryptocurrency exchange space, facilitates the buying, selling, and storage of digital currencies. The company has been at the forefront of advocating for clear crypto regulations for years.
The proposed bill seeks to define crypto tokens as securities, commodities, or other categories, clarifying the jurisdiction of the U.S. Securities and Exchange Commission. Armstrong criticised the bill for potentially eroding the authority of the U.S. Commodity Futures Trading Commission and hindering crypto companies’ ability to offer rewards on stablecoin holdings. He stated that Coinbase would rather have no bill than a flawed one, despite the company’s significant investment in lobbying for crypto-friendly legislation.
Disagreements among Republicans regarding the bill’s stablecoin provisions also contributed to the postponement. Concerns arose that the bill might not garner sufficient votes to progress out of committee. Some Democrats have expressed reservations that the bill lacks safeguards preventing political officials from profiting from crypto ventures. Senate Banking Committee Chairman Tim Scott remains optimistic, stating that discussions continue in good faith across the industry and political spectrum.
The postponement represents a setback for establishing clear regulatory guidelines for the crypto industry. The House of Representatives passed its version of the Clarity Act in July. The bill’s future remains uncertain as stakeholders continue to debate contentious provisions, including those related to stablecoin interest payments and their potential impact on the traditional banking system.
