Senate Banking Committee's 《CLARITY Act》 delayed for several weeks of review! The White House urgently calls on Coinbase to compromise

Continuing from last week when Coinbase publicly stated “withdraw support,” leading to the delay of the deliberation of the Digital Asset Market Clarity Act (CLARITY Act), the latest news indicates that the Senate Banking Committee still needs at least a few weeks before it can resume the bill’s review. The trigger for this legislative deadlock, although initiated by Coinbase’s withdrawal, still centers on the conflicting interests between traditional financial institutions and industry players in the crypto space.

According to reports from CoinDesk citing informed sources, members of the Senate Banking Committee from the Republican side and the White House have made their stance quite clear, which is to hope that the cryptocurrency industry led by Coinbase will quickly reach a consensus with banking industry representatives on the “Stablecoin Yield Terms,” and once disagreements are resolved, to restart the bill’s review. The “Stablecoin Yield Terms” proposal advocates banning crypto companies from offering interest, rewards, or other forms of yields to stablecoin users. Wall Street banking firms believe that allowing crypto platforms to offer high interest or yields could threaten the survival of traditional banks due to deposit outflows; meanwhile, Coinbase argues that this clause would impact platform revenue and weaken their competitiveness. Additionally, Bloomberg reported on Wednesday that the banking committee may find it difficult to refocus on the bill in the short term. Influenced by President Trump’s recent strong call for “institutional investors to withdraw from the housing market” to reduce living costs, the committee is now prioritizing housing issues. Although the banking committee is at a standstill, the Senate Agriculture Committee, which oversees futures commodities, has chosen to “operate solo,” releasing its own version of a cryptocurrency market structure bill on Wednesday. However, this version may become a highly partisan legislative draft. Even if the Agriculture Committee successfully sends the bill to the full Senate for a vote, without support from Democrats and accompanying bills from the banking committee, it still faces a very high risk of “failure.” In response to the deadlock, Patrick Witt, Executive Director of the White House Digital Asset Advisory Committee, issued a warning to crypto opponents on social platform X. He emphasized that passing the crypto bill is only a matter of “when,” and if they miss the current opportunity where the GOP controls the White House, Senate, and House of Representatives (GOP trifecta), future bills led by Democrats may be even more unfavorable to the industry. He said:

You may not like every detail of the CLARITY Act, but I can guarantee you, you will definitely dislike the version introduced by the Democrats even more. We should work to improve this bill, recognize the reality that compromises are necessary to get 60 votes in the Senate, and avoid letting perfection become the enemy of progress.

As of January 2026, institutions supporting the current version of the CLARITY Act include Andreessen Horowitz (a16z), Circle, Paradigm, Kraken, and Ripple; those opposing or having withdrawn support include Coinbase and the U.S. Blockchain Association.