CLARITY Act delay seen as positive for crypto markets

Market analyst Michaël van de Poppe said the failure of the CLARITY Act to advance in Congress could benefit the crypto industry.

Van de Poppe argued that the bill in its current form risked overregulation that could damage decentralised finance.

He pointed to Coinbase withdrawing support for the legislation as a key turning point in the debate.

Coinbase chief executive Brian Armstrong cited concerns including restrictions on tokenised stocks, expanded access to user data, and limits on DeFi activity.

Van de Poppe said approving the bill as drafted would have harmed broader markets and stalled innovation.

“I think if the bill were approved in its current form, it would have had a very bad impact on the markets in general,”

Michaël van de Poppe said.

He compared the stalled process to Europe’s MiCA framework, which required multiple revisions before final approval.

The analyst said the delay allows lawmakers and industry participants to continue refining the proposal.

Crypto advocates in Washington continue to push for clearer market structure rules for onchain finance.

Reports suggested the White House considered withdrawing support for the bill following Coinbase’s stance.

Armstrong denied tensions with the administration and said talks remain active.

“The White House has been super constructive,”

Brian Armstrong said, adding that negotiations are ongoing.

Venture capitalist Nic Carter criticised proposals affecting stablecoin yield.

“Don’t let them kill stablecoin yield. That would set back stables for a generation. Hold the line,”

Nic Carter said.