Analysis: Industry Insiders Express Frustration with the "CLARITY Act," Condemn Excessive Concessions to Traditional Financial Institutions

On January 15, crypto journalist Eleanor Terrett reported that the Senate Banking Committee has canceled its scheduled Thursday markup hearing for the "CLARITY Act" (Crypto Market Structure Act). Beyond Coinbase’s announcement to withdraw its support for the bill, industry members voiced widespread dissatisfaction Wednesday over the 278-page amended legislation—specifically criticizing lawmakers for making excessive concessions to banks and traditional financial institutions, particularly around stablecoin yields and tokenization. Critics argue the CLARITY Act was already biased toward traditional institutions. Meanwhile, some Democrats are pushing to include ethics provisions for senior government officials (including the president) to bar them from personally profiting from cryptocurrency projects—a point of repeated tension between Democrats and the White House. Senate Banking Committee Chair Tim Scott said in a postponement announcement, “Everyone remains engaged in sincere negotiations,” but did not specify when the committee will reschedule the markup. The Senate is adjourned next week for Martin Luther King Jr. Day and will reconvene the following week. The Senate Agriculture Committee’s markup, also postponed from this Thursday, is expected to take place then.