"Clarity Act" Negotiation Table Turnaround! Coinbase Betrays at the Last Moment, U.S. Senate Banking Committee Urgently Calls for a Halt

The US cryptocurrency regulatory legislation has experienced a sudden turn of events. The Digital Asset Market Clarity Act, originally scheduled for line-by-line review on January 15, was suddenly announced to be indefinitely postponed on the eve of the review. Behind this deadlock in negotiations are opposition from Coinbase, the largest crypto exchange in the US, and fundamental conflicts of interest among various parties at the Senate negotiation table.

Coinbase confronts head-on—Major issues with the bill content

As a key player in Washington negotiations, Coinbase CEO Brian Armstrong spoke frankly on social platform X, criticizing the new draft bill for numerous issues that could lead the industry into a dead end. Armstrong listed several flaws in the bill:

• De facto restrictions on the development of tokenized stocks;
• Imposition of prohibitive clauses on DeFi;
• Expansion of government access to personal financial records, and weakening of the Commodity Futures Trading Commission (CFTC)’s regulatory authority;
• Restrictions on stablecoin yield mechanisms.

In Armstrong’s view, this bill, intended to establish a regulatory order, actually poses a destructive threat to the entire industry. His strongly worded statement has completely changed the tone of the negotiations.

Divergences among parties remain unresolved, banking sector’s opposition becomes main obstacle

Senate Banking Committee Chair, Republican Senator Tim Scott, confirmed the bill’s postponement on Wednesday but did not disclose a new review date. Scott stated in a release that he had engaged in extensive discussions with crypto industry leaders, financial sector representatives, and bipartisan colleagues. All parties participated in good faith, hoping to establish clear regulatory rules.

However, signs of deadlock had already appeared. The core dispute revolves around whether “stablecoin yield mechanisms should be permitted.” According to informed sources, the opposition from the banking industry is so strong that Scott cannot even guarantee that all Republicans will vote in favor. The fears of financial institutions regarding cryptocurrencies have become the most difficult barrier to break at the negotiation table.

Democratic Party and White House political game poses hidden risks

Beyond the opposition from banks and the crypto community, deeper political factors are also brewing. Democratic lawmakers insist on including strict “ethics clauses” in the bill to restrict government officials from profiting from the crypto industry. This clause is widely interpreted as directly targeting Trump and his family’s crypto ventures (such as the recently active World Liberty Financial).

However, these proposals have repeatedly faced resistance from the White House during negotiations, as they would directly impact the White House’s own crypto plans. Ultimately, Tim Scott stated that this issue has been referred to the Senate Ethics Committee and is outside the jurisdiction of the Banking Committee. This decision effectively pauses the political dispute.

Years of investment go to waste, reform prospects clouded

The crypto industry has invested heavily in political donations and lobbying efforts over the years, hoping that the Digital Asset Market Clarity Act would become a milestone for regulatory compliance. However, this bill stumbled at the negotiation table before crossing the finish line.

Notably, the Senate Agriculture Committee has also postponed its review of related legislation until the end of the month. While there is still an opportunity for the two committees to merge efforts, the setback faced by the Banking Committee undoubtedly casts a shadow over the future of US crypto legislation. The industry’s regulatory dreams still await further negotiations and compromises.