Coinbase Pulls Support, Chaos Ensues!

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Oh, the mighty Coinbase, that titan of the digital realm, has cast aside its support for the CLARITY Act, that most perplexing of legislative beasts, thus forcing the Senate Banking Committee, that most fickle of jesters, to postpone their grand markup. 🐴

In a statement, the CEO of Coinbase, Brian Armstrong, with a face as long as a serf’s complaint, declared that the draft, which was to be the centerpiece of their markup, was riddled with “too many issues” and “bad” for the sector. 🧠

He lamented the ban on tokenized equities, the stifling of stablecoin rewards, and the prohibition of DeFi, which, he claimed, would “limit privacy”-a noble cause, indeed. 🧨

“This version,” he declared, “would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft.” A sentiment as clear as a foggy Moscow morning. 🌫️

He added that crypto needs to be treated on a “level playing field with the rest of financial services”-a lofty goal, akin to teaching a cat to dance. 🐱

Senate Banking Committee Postpones Markup

Coinbase’s move, like a stone thrown into a pond, derailed the markup scheduled for the 15th of January. In response, Chairman Tim Scott, that paragon of bipartisanship, postponed the session to allow negotiations to continue. 🤝

Scott proclaimed,

“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith.” A tale as believable as a ghost story in a haunted mansion. 🏰

However, unlike the Senate Agriculture Committee, which also pushed its markup timeline to the last week of January, the Banking Committee, that most enigmatic of bodies, did not share a new schedule as of press time. 🕵️‍♂️

Whether the Banking committee will align with the Agriculture’s schedule was unclear-like asking a mirror to predict the weather. ☁️

Meanwhile, Alex Thorn, the Head of Research at Galaxy, noted that Senator Elizabeth Warren had filed 35 amendments to the crypto bill. These include stricter DeFi oversight and a proposed ban on tokenized stocks-sure to delight the banks, who had long lobbied for such measures. 🏦

Taken together, the changes were largely viewed as a win for the banks, who had successfully pushed for limiting stablecoin rewards in the draft. A triumph for the old guard, indeed. 🎩

Market is 50/50 on the CLARITY Act

These last-minute amendments, like a thief in the night, further diluted the bill. With the temporary pause, the market was as uncertain as a drunkard’s aim-nearly 50/50 on the chance of it becoming law this year. 🎲

At the time of writing, Polymarket showed a 52% chance of the bill becoming law. That figure, once as high as 80%, now mirrors the uncertainty of a squirrel in a storm. 🌩️

Final Thoughts

  • The Senate Banking Committee, that most fickle of creatures, has joined its Agriculture colleagues in postponing the markup of the crypto market structure bill. 🐴
  • Coinbase CEO said the industry would “rather have no bill than a bad bill.” A sentiment as timeless as a stone. 🧱

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2026-01-15 14:21