Coinbase Exec: CLARITY Act Markup Likely Next Week in Senate
Coinbase’s US policy vice president Kara Calvert says the CLARITY Act could be marked up by the US Senate Banking Committee as early as next week. She stressed the bill needs at least 60 Senate votes and must keep bipartisan support. A HarrisX poll released Thursday found strong public demand for clear crypto rules: 70% of voters say legislation should already be passed, and 62% say the US should set global digital-finance standards.
Calvert also highlighted why the CLARITY Act previously stalled in January after Coinbase withdrew support. Key concerns included lack of legal protections for open-source software developers, a prohibition on stablecoin yield, and tighter DeFi-related regulations. She added that institutional adoption is more constrained by tax policy than market-structure rules. Under current regulations, the IRS requires exchanges to report transactions using 1099-DA forms, even for very small trades; Calvert said this creates unnecessary compliance burden.
She “hopes” tax reform legislation can advance in 2026 and pointed to proposals such as the Digital Asset PARITY Act. Calvert expects Senate action soon and legislation moving in the House within the next one to two months. For traders, the prospect of a CLARITY Act markup and broader bipartisan momentum could be a near-term sentiment driver, while any delay on taxes or stablecoin/DeFi specifics remains a key watch item.
Bullish
The article signals improving regulatory momentum for the CLARITY Act: Coinbase’s Kara Calvert expects a Senate Banking Committee markup as early as next week, supported by a HarrisX poll showing broad bipartisan demand for clear rules. That typically boosts risk-on sentiment for large-cap crypto as traders price in a path toward legal clarity.
However, the same interview reiterates key prior sticking points—stablecoin yield restrictions, DeFi regulatory tightness, and missing legal protections for open-source developers. If negotiations soften these areas, upside sentiment can strengthen further. If they worsen or stall, the market could react with volatility similar to past “committee scheduling” headlines, where price moves often front-run the news and then retrace if the bill language changes.
Tax policy is another swing factor. Calvert argues institutional adoption is currently constrained more by IRS 1099-DA reporting and compliance costs than by market-structure rules. Near term, traders may focus on whether 2026 tax reform advances; long term, clearer taxation could improve custody/exchange activity and trading volumes, supporting sustained flows. Net: regulatory progress odds rise, but execution risk remains—hence bullish, with watchpoints on stablecoin/DeFi provisions and tax legislation timing.