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Coinbase CEO Brian Armstrong said late Tuesday evening that the company could no longer support the US Senate’s version of the cryptocurrency market structure bill after lawmakers introduced radical changes to the CLARITY Act.
He said the Senate Banking Committee’s bill “fractures key parts of the market structure” and creates risks for tokenized stocks, decentralized finance, stablecoins, and open cryptocurrency markets.
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The newly changed CLARITY law
Coinbase withdrew its support just hours ago The date of the Senate moving the bill Towards the increase of committees.
Meanwhile, sources in the Capitol are circulating Hill unconfirmed reports Reports that tomorrow’s margin may be withdrawn after Coinbase’s move.
The reports remain rumours, but they stand out Increased political risks About the bill.
Armstrong outlined four main issues in his statement. Ban Current on tokenized stocks This means that blockchain-based stocks and financial instruments cannot trade freely on the cryptocurrency infrastructure.
The CEO of Coinbase believes that the law is expanding Government access to DeFi transaction data Pushing decentralized protocols into banking secrecy and anti-money laundering regulations.
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It is worth noting that the recent changes granted The Securities and Exchange Commission has broader oversight In digital currency markets. I might report this The problems of the Gensler era To the industry.
Finally, he said that the project contains In provisions for stablecoins and banks It allows banks to limit competition and limit the original rewards of cryptocurrencies.
What has changed in the Senate rewrite?
The Senate Banking Committee will not vote on the Clarity Act passed by the House. Instead, it uses a fully defined rewrite As “a change in the nature of the alternative”.
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This bill makes several major changes in how US cryptocurrency markets are regulated.
Here’s a little summary of what’s changed.
Coinbase is the largest regulated cryptocurrency exchange In the United States it is one of the most active political voices in the industry in Washington.
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His public withdrawal suggests that the project may not gain industry support at a critical time.
This is important because the Senate Banking and Agriculture committees need bipartisan support to pass the bill.
What happens after the law of clarity?
The Senate was expected to begin committee review this week. This is the time when lawmakers formally debate and vote on amendments.
However, after Coinbase’s statement, some political insiders now say that the leadership may postpone or withdraw the increase in the margin to avoid a public collapse of support.
As of now, the project is still in flux. But the fight over who controls cryptocurrencies, stablecoins and decentralized finance in the United States has clearly entered its most fragile phase.
