The U.S. Senate Banking Committee has postponed a key vote on the Digital Asset Market Clarity Act, amid disagreements over stablecoin provisions and opposition from Coinbase. The delay, originally set for January 15, 2026, highlights tensions between crypto innovators and regulators. While the White House has reportedly threatened to withdraw support, Coinbase CEO Brian Armstrong refuted such rumors, praising the administration's constructive role.
The Senate Banking Committee's decision to pull the Digital Asset Market Clarity Act, or CLARITY Act, from its scheduled markup hearing on January 15, 2026, came just 12 hours before the vote, according to reports. The bill aims to clarify regulatory oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for digital assets, categorizing them as commodities, investment contracts, or payment stablecoins. It also addresses stablecoin rules, building on the 2025 GENIUS Act that set standards for stablecoin issuers.
Key disputes center on stablecoin yield rewards, which Coinbase argues would be banned under the current draft, potentially harming the $308 billion stablecoin industry and its $1.3 billion in revenue from such incentives in 2025. CEO Brian Armstrong stated the exchange "can’t support the draft legislation in its current form," adding, "We’d rather have no bill than a bad bill." Critics like Coinbase also highlight risks to decentralized finance (DeFi) protocols, tokenized equities, and user privacy from expanded regulatory data access.
The White House, aligned with President Donald Trump's pro-crypto stance, expressed fury over Coinbase's withdrawal of support, calling it a "rug pull" and warning of potential loss of backing unless compromises are reached. One administration source emphasized, "This bill is President Trump’s bill—not Brian Armstrong’s." However, Armstrong refuted rumors of threats, saying, "The White House has been super constructive here."
Senate Banking Chairman Tim Scott remains optimistic, noting parties are "at the table working in good faith" and emphasizing the bill's role in enhancing anti-money laundering measures. Blockchain Association CEO Summer Mersinger described the delay as "a healthy part of policymaking." Ron Hammond of Wintermute added that negotiations are close, with the bill retaining momentum despite hurdles like ethics provisions on presidential crypto ties and protections for software developers.
The Senate Agriculture Committee plans to release its legislative text by January 21, 2026, with a markup on January 27. Meanwhile, market reactions were mixed: XRP steadied near $2.07, Bitcoin hovered around $95,700, and Coinbase stock held at $241.15. Other firms like Robinhood, Kraken, and Ripple support the bill for providing regulatory clarity. Analysts predict a 55% chance of passage via Polymarket, viewing the delay as a negotiating tactic.
