Delay Expected for CLARITY Act Amid Coinbase Withdrawal
- US Senator Cynthia Lummis anticipates a delay in the Senate Banking Committee’s hearing on the CLARITY Act.
- Coinbase withdrew its support for the bill, citing unfavorable provisions, including the elimination of stablecoin rewards.
- The Senate markup was initially scheduled for Thursday at 10 AM ET but may be postponed due to these developments.
- Coinbase CEO Brian Armstrong raised concerns about government access to financial records and reduced authority for regulators over crypto markets.
- In Q4, Coinbase generated $247 million from stablecoin revenue and $154.8 million from blockchain rewards.
The ongoing debate over DeFi provisions in the CLARITY Act highlights conflicting interests between banking and crypto sectors, with potential implications for market structure legislation.
The withdrawal of support by Coinbase could significantly impact its revenue streams, as evidenced by its Q4 earnings of $247 million from stablecoin activities alone.
