Under regulatory pressure, the American crypto sector was closely observing the CLARITY Act, supposed to establish a clear legal framework for these assets. However, the text was abruptly paused in Congress, after Coinbase abruptly withdrew support. Presented as a structuring reform, the latest version of the project has triggered strong criticism, accused of threatening innovation. A political setback which rekindles tensions between legislators and actors in an ecosystem always in search of recognition.
In brief
- The CLARITY bill, supposed to structure the American crypto market, is on hold in Congress.
- Coinbase withdraws its support for the text, denouncing dangerous measures for DeFi and innovation.
- Among the most contested points: the ban on yield stablecoins and access to user data.
- This blockage opens the way to a renegotiation of the project, based on the model of the MiCA framework adopted in Europe.
The CLARITY bill put on hold: legislation contested from its last version
The CLARITY bill, intended to regulate the crypto market in the United States, was abruptly slowed down after the withdrawal of support from Coinbase, a major player in the ecosystem.
On January 17, Brian Armstrong, CEO of the platform, shared a direct criticism of the text on X, revealing several provisions deemed threatening to innovation. According to him, the current version of the law contains unacceptable points: “the text de facto bans tokenized stocks, imposes government access to DeFi user data and prohibits yield stablecoins”.
Here is the main sticking points identified by Coinbase:
- The de facto ban on tokenized actions: an obstacle to the integration of traditional and blockchain markets;
- Government access to DeFi user data: concerns around privacy and decentralization;
- The prohibition of yielding stablecoins: a direct threat to a pillar of decentralized finance.
Analyst Michaël van de Poppe also reacted, highlighting the deleterious effects that this version could have had on the entire market: “I think that if the text had been adopted in its current version, the impact would have been very negative on the markets”.
This opposition highlights a growing divide between American regulators and crypto players, who denounce a desire for supervision perceived as punitive, without sufficient consultation with professionals in the sector.
A strategic break that looks like a victory for the crypto ecosystem
Beyond the immediate tensions, several industry figures see this as an opportune moment to renegotiate a more suitable framework.
Still on He claims that “negotiations are still ongoing to arrive at a version of the project that would suit both the crypto industry and community banks”. This declaration aims to defuse tensions while reaffirming the desire to achieve balanced legislation.
This suspension could thus offer a valuable space for dialogue, like the process which led to the MiCA regulation in Europe, amended several times before its adoption. Van de Poppe himself draws this parallel: “this strongly reminds me of the MiCA regulations in Europe”.
The European precedent shows that a regulatory framework can emerge from a solid compromise, provided that the debates are not rushed. In the meantime, some DeFi players fear that overly strict measures will permanently slow down innovation. Investor Nic Carter, also on This would slow down their development for an entire generation.”
Slowed before even being debated, the CLARITY Act divides the American Senate and crypto players. Between fear of too rigid a framework and the need for regulatory clarity, the balance remains to be found. This blockage highlights the persistent difficulty in building a framework adapted to innovation without stifling it. The dialogue remains open, but tensions remain.
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