Senate Banking Committee Delays Crypto Market Structure Bill After Industry Pushback
The US Senate Banking Committee postponed the scheduled markup of the controversial crypto market structure bill (CLARITY Act). Chairman Tim Scott said talks with industry, financial-sector leaders and both parties are ongoing and aimed at producing clear rules to protect consumers, national security and keep finance innovation in the US. Senator Cynthia Lummis had warned the markup would likely be delayed; no new date was set, though observers expect action before month-end. Major industry reactions included Coinbase withdrawing support after reviewing the draft, citing provisions that would ban stablecoin yield, restrict tokenized asset pathways and increase DeFi surveillance. Ripple CEO Brad Garlinghouse said the company remains engaged and optimistic about resolving issues in markup. Bitcoin traded near a two-month high amid the news, peaking around $97,700 before slipping to about $96,500, remaining up over 5.5% for the week. Key figures: Sen. Tim Scott, Sen. Cynthia Lummis, Coinbase CEO Brian Armstrong, Ripple CEO Brad Garlinghouse. Primary keywords: crypto market structure bill, CLARITY Act, Coinbase, stablecoin yield, DeFi surveillance.
Neutral
The postponement produces a neutral short-term market effect. Immediate price action showed modest volatility—Bitcoin briefly reached a two-month high then slipped slightly—but the delay reduces the risk of an imminent adverse regulatory shock. Coinbase’s withdrawal of support is a bearish signal for proposals that would restrict stablecoin yields and DeFi activity, which could weigh on crypto sector growth if those provisions persist. However, leaders’ statements that negotiations continue and that markup is likely soon reduces uncertainty compared with an outright passage of restrictive text. Historically, regulatory delays or extended negotiations tend to produce muted-to-mixed market responses: prices often rally on the removal or delay of perceived negative outcomes but can fall if drafts resurface unchanged. Short-term traders should expect moderate volatility around subsequent markup dates and statement releases; leverage should be used cautiously. Long-term investors should monitor final bill language—especially clauses on stablecoin yields, tokenized assets, and DeFi surveillance—as lasting restrictions would be structurally negative for DeFi yields and token utility, while clearer jurisdictional rules could benefit institutional adoption. Key indicators to watch: bill text revisions, major exchange positions (e.g., Coinbase), SEC responses, congressional timetable, and on-chain stablecoin flows.