The current trajectory of the CLARITY crypto market structure bill in the United States Congress, which has not advanced, is being viewed as a positive development for crypto markets and the broader industry, according to market analyst Michaël van de Poppe.
Van De Poppe pointed to crypto exchange Coinbase withdrawing its support for the bill on Wednesday. This withdrawal was accompanied by concerns raised by Coinbase CEO Brian Armstrong in a post on X regarding several issues with the most recent version of the legislation.
Armstrong highlighted several key concerns, including what he described as a "de facto ban" on tokenized stocks, provisions that would grant government access to user records on decentralized finance (DeFi) platforms, and a prohibition on yield-bearing stablecoins. Van De Poppe commented on the situation, stating:
“I think if the bill were approved in its current form, it would have had a very bad impact on the markets in general. So, now, all the parties are aligned to continue the discussion. It reminds me a lot of the Markets in Crypto Assets (MiCA) regulations in Europe.”
Van de Poppe further noted that MiCA, a comprehensive crypto regulatory framework for the European Union (EU), also underwent several rounds of negotiations and revisions before being enacted into law.
The establishment of a crypto market structure framework in the US is a significant policy objective for the crypto industry and its allies in Congress, who are advocating for clear regulatory guidelines for onchain finance.
Coinbase CEO Addresses White House Relations and Ongoing CLARITY Bill Negotiations
Reports emerged on Saturday from independent crypto reporter Eleanor Terrett indicating that the White House had considered withdrawing its support for the CLARITY Act following Coinbase's decision to pull its backing for the legislation.
Brian Armstrong, CEO of Coinbase, has denied these reports, asserting that negotiations are continuing with the aim of drafting a version of the bill that will be acceptable to both the crypto industry and community banks.
Armstrong stated that the White House has been "super constructive" throughout the process. His comments on X generated considerable discussion, with many users expressing criticism of the banking sector and the proposed prohibition on yield-bearing stablecoins.
Venture capitalist Nic Carter urged continued resistance, stating on X: “Don’t let them kill stablecoin yield. That would set back stables for a generation. Hold the line.”