At a Glance
- Senate Banking Committee postponed markup of the Clarity Act after Coinbase CEO Brian Armstrong slammed the draft.
- Agriculture Committee also delayed its version until January 27, scrapping Thursday sessions.
- Armstrong listed tokenized-equity ban, DeFi limits, and government surveillance as deal-breakers.
- Why it matters: The pause freezes the first major attempt at U.S. crypto market structure rules, leaving firms in limbo.
Senate committees hit pause on the most anticipated crypto legislation of the year after Brian Armstrong, head of exchange giant Coinbase, publicly rejected the draft text hours before scheduled votes.
Committees Scrap Thursday Markup
Both the Senate Banking and Agriculture panels shelved their respective versions of the Clarity Act on Wednesday evening. The Banking Committee gave no new date; Agriculture reset its markup for January 27. Once each committee approves a bill, the two texts will be merged and sent to the full Senate. The House passed its version last year, so final passage would send the measure straight to President Trump’s desk.
Armstrong’s Public Rebuke
Armstrong aired his objections on X, writing: “We appreciate all the hard work by members of the Senate to reach a bi-partisan outcome, but this version would be materially worse than the current status quo. We’d rather have no bill than a bad bill.”
He listed four red-line issues seen in the 48-hour review:
- A de-facto ban on tokenized equities
- DeFi prohibitions
- Unlimited government access to user financial data
- No protections for non-custodial wallet developers
Benchmark, a Wall Street research firm, told investors the tirade looked like a negotiating tactic rather than a final walk-away.
Industry Wish List
Crypto firms want the bill to resolve three core questions:
- When is a crypto asset a security?
- Can traditional stocks be tokenized without new restrictions?
- Are developers who never hold customer funds shielded from liability?
Stablecoins received partial clarity through last year’s GENIUS Act, but banks now lobby for tweaks, arguing the rules tilt the playing field toward crypto startups. Open Secrets data show crypto interests poured $133 million into the 2024 election cycle, heightening expectations for a regulatory return on that spend.
Samourai Sentence Shadows Talks
Non-custodial wallet protections gained urgency after the founders of privacy-focused Samourai Wallet received prison terms of four and five years for creating a bitcoin mixing tool. President Trump pardoned the former Binance CEO yet has taken no action on the Samourai developers, despite saying he would “look into” their case. Critics note Binance lists USD1, a Trump-affiliated stablecoin that generates tens of millions in revenue for its issuer.
Next Steps
Senator Tim Scott, who chairs the Banking panel, insisted negotiations remain active: “I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.”
Coin Center, a non-profit advocacy group, called the delay “a brief pause” and praised “tremendous progress.” No new markup dates have been announced.
