The CLARITY act ran into more roadblocks, as the U.S. Senate Banking Committee postponed a markup session on the bill it had scheduled to mark up. The move came after widespread complaints by leading figures in the crypto industry about the last draft. Coinbase’s chief executive, Brian Armstrong, said the pause does slowed down the effort and that negotiations had become intense .
CLARITY Act Talks Continue as Draft Fixes Take Focus
In an X post, journalist Eleanor Terrett wrote that she asked Armstrong whether Coinbase withdrawing support hurt the bill’s chances. He ruled that out and said many in the industry believe it’s a concern. The real issue, Armstrong added, is not whether lawmakers solve the various issues now or wait for them to be addressed in an amendment.
Momentum on the bill has not necessarily stalled with the blocked committee agenda, Armstrong said. He said the controversy has also brought to light weaknesses in the draft that stakeholders are now having to address. He also said the discussion had brought people closer together by starkly laying out the issues where consensus is still needed.
As CoinGape reported that the CLARITY act stalls as senate postpones thursday’s markup . But the committee postponed that meeting, and did not release a new date. Senator Cynthia Lummis acknowledged the delay in her own X post. She said, Lawmakers got unfavorable feedback from key figures.
Chairman Scott’s leadership was also recognized as Lummis urged to move forward with the negotiations. The Senate is near providing that clarity the industry seeks, she said. Everyone is still at the table, and nobody has pulled out of negotiations, she said, adding that bipartisan legislation remains the aim.
Jennings Flags Bill as Major Win for Builders and Market Rules
Government policy debate over the CLARITY Act broadened following the delay. In an X post, Miles Jennings called crypto market structure legislation a legal framework that would shield innovation. He contended that the bill could create a freedom to build as a matter of federal law and he referred to it as the most important innovation-focused effort in a generation.
The draft would also classify building and deploying code as legal activity under federal rules, Jennings said. He also said the bill would make clear that network tokens and collectible NFTs are not securities. Jennings said regulated ICOs would cut uncertainty and lead to a more transparent launch process.
More points raised by Jennings were about enforcement and fairness. He said the bill would make insider trading and rug pulls illegal. Jennings said it would align incentives more closely and build a closer relationship between TradFi and DeFi.
Flawed though it may be, he called the bill a rare opportunity for the industry. For the time being, the CLARITY Act is in limbo, while lawmakers negotiate amendments to win industry support and start up the markup again.
