The Digital Asset Market Clarity Act, often called the CLARITY Act, has triggered a split among U.S. crypto leaders. Coinbase, the largest U.S. exchange, said it cannot support the Senate Banking Committee’s current draft and warned that the proposal could leave the sector worse off than today’s uneven guidance.
Moreover, the committee postponed its scheduled markup after the dispute, keeping negotiations open. Lawmakers designed the crypto market structure bill to set clearer lines between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The draft would treat some tokens as securities and others as digital commodities, and it would place spot market oversight for digital commodities with the CFTC.
Coinbase Chief Executive Brian Armstrong said the draft creates “too many issues” and pointed to provisions he views as a practical ban on tokenized equities. He also raised concerns about limits on decentralized finance activity and expanded access to users’ financial records, arguing that the text would weaken privacy protections for on-chain participants.
Armstrong also criticized proposed curbs on stablecoin rewards. He said the language could advantage banks and restrict competition from crypto-native payment products. He added that he would prefer no legislation to a bill that reduces innovation and constrains lawful product design.
Some executives and policy groups have urged Congress to keep the process moving and fix problems through amendments. Chris Dixon of a16z Crypto said builders need clear rules and argued that the bill supports decentralization and developers, even if lawmakers still need to refine the text before final passage.
Coin Center stated a similar tone and said it feels optimistic about the direction of the current market structure draft. The group emphasized protections for developers of decentralized protocols and backed measures that reduce the risk of criminal liability for writing and publishing code.
Senate Banking Committee Chair Tim Scott described the pause as a brief delay intended to preserve bipartisan talks. The committee delayed consideration to allow more time to address unresolved items, including stablecoin incentives and the balance of authority between the SEC and the CFTC.
One disputed provision would bar interest paid solely for holding stablecoins while still allowing some incentives tied to payments or loyalty programs. That line has become a major bargaining point for exchanges, stablecoin issuers, banks, and consumer advocates. Lawmakers have also debated ethics language and conflict-of-interest limits linked to digital asset backers.
Meanwhile, Bitcoin climbed toward $97,700 on Wednesday before easing back in Thursday trading, while investors tracked the markup timeline and possible edits to the CLARITY Act text.