The future of US crypto regulation took a sudden turn this week after Coinbase CEO Brian Armstrong announced that the exchange could no longer support the current version of the CLARITY Act, a bill designed to define digital asset market structure in the United States.
Just hours after Armstrong’s statement, the US Senate Banking Committee postponed its planned markup of the bill. Speaking to CNBC from Capitol Hill, Armstrong explained that the current draft contains structural issues that could be “catastrophic for the average American consumer” if passed without revision.
“If the bill went into markup, the only way to fix it would have been through amendments that were already locked in,” Armstrong said. “We didn’t think it was prudent to let it advance in that form.”
Instead, Armstrong believes lawmakers now have an opportunity to produce a new draft and return to markup within a few weeks—a delay, but not a derailment.
Why the CLARITY Act Matters
The CLARITY Act is intended to answer one of the crypto industry’s biggest questions:
Who regulates what?
The bill would define how responsibilities are divided between the SEC and the CFTC, and how assets like Bitcoin, Ethereum, and stablecoins are classified. It also touches on:
- Decentralized Finance (DeFi)
- Interest-bearing stablecoins
- Consumer protections
- Exchange and broker obligations
While lawmakers aim to provide “clarity,” many industry leaders argue that parts of the bill could unintentionally stifle innovation or impose rules designed for traditional finance onto open blockchain systems.
That concern led Coinbase to pull its support—an unusual move given the company’s deep involvement in US policy discussions.
Industry Divided, But Momentum Remains
Crypto advocacy groups stress that inaction is not an option.
Cody Carbone, CEO of The Digital Chamber, summed it up clearly:
“Market structure must move forward. The only path to lasting policy is getting back to the table and finishing the job.”
Despite the delay, Senate leaders described the pause as brief, with bipartisan negotiations continuing. A revised draft could emerge by the end of January, keeping 2026 as a realistic target for legislation.
Meanwhile, the Senate Agriculture Committee is still preparing its own version of the bill, showing that Washington’s push toward a crypto framework is far from over.
What This Means for Crypto in 2026
This moment highlights a bigger truth:
Crypto has become too important to ignore, but too complex to rush.
Governments now recognize that Bitcoin, stablecoins, and onchain finance are no longer fringe technologies. They are part of the global financial system. The challenge is crafting rules that protect users without killing innovation.
Whether you are a long-term BTC holder, a DeFi user, or a business building in Web3, the outcome of this bill will shape:
- How crypto platforms operate in the US
- How investors access digital assets
- How innovation flows across borders
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