Analyst's opinion: The CLARITY bill's setbacks benefit the cryptocurrency industry and Bitcoin, as all parties return to the negotiation table.

Market analyst Michaël van de Poppe stated that the failure of the U.S. “CLARITY Act” to advance in Congress is actually a positive development for the crypto market and industry, as overregulation would severely damage DeFi and the overall market.
(Background recap: Coinbase calls to withdraw support for the “CLARITY Act”! Ban on stablecoin interest sparks a full-scale battle between the crypto industry and banks)
(Additional background: Milestone! The U.S. passes three crypto bills: GENIUS stablecoin, Clarity regulation, anti-CBDC law sent to Trump for signing)

Market analyst Michaël van de Poppe pointed out that the “CLARITY” crypto market structure bill’s lack of progress in the U.S. Congress is actually a positive development for the crypto market and the entire industry. Van de Poppe cited Coinbase’s Wednesday withdrawal of support for the bill, as well as CEO Brian Armstrong’s listing of multiple concerns on the X platform, as key turning points.

In the past, Armstrong highlighted several issues with the latest version of the “CLARITY Act”:

• Imposing a “de facto ban” on tokenized stocks
• Government access to user records on decentralized finance (DeFi) platforms
• Banning stablecoin yields

Van de Poppe stated:

“I believe that if this bill passes in its current form, it will have a very negative impact on the overall market. So now all parties are willing to continue dialogue and negotiations, which reminds me of the legislative process of the European Crypto Asset Market Law (MiCA).”

He pointed out that the EU’s MiCA regulations also went through multiple rounds of negotiations and revisions before the final version was passed.

Armstrong denies tense relations with the White House

Independent crypto journalist Eleanor Terrett reported on Saturday that the White House threatened to abandon support for the “CLARITY Act” after Coinbase withdrew its support. Armstrong denied this report, stating that all parties are still negotiating to draft a bill that satisfies both the crypto industry and community banks. He emphasized that the White House has been “very constructive” throughout the process.

Armstrong’s remarks sparked a wave of criticism against the banking industry and the stablecoin yield ban.

Venture capitalist Nic Carter stated: “Don’t let them kill stablecoin yields, as that would set stablecoins back a generation. Keep the line.”

For the crypto industry, pushing for the passage of a market structure framework in the U.S. remains a top policy goal. Although the bill’s delay extends regulatory uncertainty, it also provides more room for negotiation, avoiding the passage of potentially harmful clauses that could stifle innovation.