The debate over DeFi and stablecoin reward provisions in the CLARITY Act is at risk of holding the bill back as banking and crypto stakeholders push competing agendas.
US Senator Cynthia Lummis reportedly expects the US Senate Banking Committee to delay its hearing on crypto market structure legislation after Coinbase withdrew support for the bill.
There were already some murmurs of a CLARITY Act Senate markup delay on Wednesday, which were heightened following an X post from Bloomberg reporter Steven Dennis on Wednesday night, stating:
“Lummis tells me her recommendation and expectation is that the markup be pulled for now. It’s Banking Chair Tim Scott’s call.”
The Senate markup is scheduled for Thursday at 10:00 am Eastern Time.
Cointelegraph reached out to Scott’s office for comment, but didn’t receive an immediate response.
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Lawmakers have been consulting with members of the banking and crypto industries over provisions of the CLARITY Act for several weeks.
However, Coinbase publicly pulled its support for the bill on Wednesday, arguing the latest text was unfavorable to the industry.
In addition to killing stablecoin rewards, Coinbase CEO Brian Armstrong flagged concerns over restricting tokenized stocks, the government having unlimited access to financial records, and the US commodities regulator receiving less authority over the crypto markets than initially anticipated.
”This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully we can all get to a better draft. “
This is a developing story, and further information will be added as it becomes available.
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