The Senate Banking Committee has paused consideration of the CLARITY Act after Coinbase withdrew public support for the proposal.

Committee decision

The committee cited significant disagreements among lawmakers and industry stakeholders that prevent immediate advancement of the bill.

Senator Tim Scott acknowledged that differences are substantial enough to halt further work on the draft legislation for now.

Industry and legislative concerns

Market participants and some senators argue the bill includes contentious provisions, including a de facto ban on tokenized equities and strict limits on decentralized finance.

Critics also warn that the proposed text could weaken the role of the CFTC while transferring additional authority to the SEC, altering current regulatory balance.

«does not serve the interests of the crypto industry»

Republican senators stated that the CLARITY Act in its present form "does not serve the interests of the crypto industry", prompting the delay.

Next steps

With public opposition from a major exchange and unresolved disputes among lawmakers, further discussion and amendments have been postponed indefinitely.

The committee did not specify a timeline for revisions or renewed consideration, leaving the bill's prospects uncertain while stakeholders reassess priorities.