The U.S. Senate Banking Committee has postponed a key markup hearing on the Digital Asset Market Clarity Act, originally set for January 15, 2026, following opposition from Coinbase. The delay stems from concerns over provisions affecting stablecoin rewards and regulatory authority. Lawmakers and industry leaders express optimism for continued negotiations.
On January 15, 2026, U.S. Senate Banking Committee Chairman Tim Scott (R-S.C.) announced the postponement of a markup hearing for the comprehensive digital asset market structure legislation, the Digital Asset Market Clarity Act (CLARITY Act). The hearing was originally scheduled for that day. Scott stated, “I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.” The decision came shortly after Coinbase, the largest U.S. crypto exchange, publicly withdrew support for the latest draft, citing issues with stablecoin rewards programs and excessive authority granted to the Securities and Exchange Commission (SEC).
The CLARITY Act, which passed the U.S. House of Representatives on July 17, 2025, and was referred to the Senate Banking Committee on September 18, 2025, introduces a two-part classification framework for digital assets: “ancillary assets” presumed as securities subject to disclosure, and “network tokens” treated as commodities. An amended draft released on January 12, 2026, also directs the SEC and Commodity Futures Trading Commission (CFTC) to promulgate joint rules for portfolio margining, clarifies that stablecoin issuers are not deemed to pay interest if third parties offer rewards, treats tokenized securities as their underlying instruments, and requires DeFi intermediaries to implement risk programs.
Coinbase CEO Brian Armstrong emphasized protecting consumers and competition, saying banks are trying to “kill their competition” and that “crypto companies should be allowed to compete and offer loans just like banks.” He lobbied lawmakers on Capitol Hill that day to safeguard stablecoin rewards. Industry reactions vary: Kraken co-CEO Arjun Sethi warned that abandoning talks would “lock in uncertainty,” while Robinhood CEO Vlad Tenev reaffirmed support for the bill. Sen. Cynthia Lummis (R-Wyo.) noted lawmakers are “closer than ever” to agreement, and Sen. Bill Hagerty (R-Tenn.) expressed confidence in reaching consensus soon.
The Senate Agriculture Committee, which oversees the CFTC, had already postponed its markup to the last week of January, with a hearing now set for January 27. Senate Democrats plan to resume talks with crypto representatives on January 16. The White House, through AI and crypto czar David Sacks, remains committed to bipartisan legislation. The delay has impacted markets, with Bitcoin sliding below $96,000 during U.S. trading hours. Analysts view it as a strategic pause amid tensions between crypto firms and banks, who lobby against yield incentives on stablecoins that could compete with traditional deposits.
