The Senate Banking Committee has postponed its markup of the Clarity Act after Coinbase CEO Brian Armstrong publicly criticized the digital-asset regulatory framework that sailed through the House last summer.
The delay halts momentum for the bill that passed during the lower chamber’s “Crypto Week,” and bitcoin’s price slipped Thursday as traders absorbed the news.
Committee Chairman Puts Brakes on Clarity Act
Chairman Tim Scott (R-S.C.) removed the Clarity Act from Thursday’s scheduled markup agenda shortly after Armstrong voiced opposition, according to News Of Los Angeles. The legislation had been poised to advance after clearing the House with bipartisan support, but Armstrong’s intervention has now stalled its path in the Senate.
Bitcoin dropped on the announcement, reflecting investor concern that regulatory clarity may take longer than anticipated.
What the Clarity Act Would Do
- Establish federal rules for digital-asset custody and trading
- Define which tokens qualify as commodities vs. securities
- Set capital and disclosure requirements for exchanges
- Create a registration pathway for crypto platforms with the SEC and CFTC
Supporters argue the bill would replace today’s patchwork of state-level oversight with uniform national standards.
Armstrong’s Objection
Armstrong contends the current draft imposes excessive compliance costs and could push innovation offshore, News Of Los Angeles reported. He has pressed senators to revise provisions he views as hostile to decentralized finance, arguing that stricter rules would entrench large incumbents while stifling startups.
Next Steps Uncertain
With the markup postponed, the committee has not announced a new date. Staffers say Chairman Scott wants additional industry feedback before moving forward, leaving the bill’s fate in limbo for now.
