US Senate crypto market structure bill could face setback… Lummis says markup likely to be postponed

A markup in the US Senate Banking Committee on the crypto market structure bill known as the “Clarity (CLARITY)” Act could be delayed due to disagreements over key issues.

According to Cointelegraph on the 15th (local time), US Senator Cynthia Lummis said she believes the Senate Banking Committee is likely to postpone the scheduled markup of the Clarity Act for the time being. The markup had originally been set for 10:00 a.m. on the 16th (Eastern Time).

Bloomberg reporter Steven Dennis wrote on X that “Sen. Lummis is advising that, for now, it would be better to pull the markup, and said she expects that to happen,” adding that “the final decision rests with Banking Committee Chair Tim Scott.”

Deliberations over the Clarity Act have struggled in recent weeks as the interests of the banking sector and the crypto industry have clashed. Provisions related to decentralized finance and stablecoin reward structures have emerged as central points of contention.

Coinbase’s decision the previous day to withdraw its support for the bill is also seen as having influenced the likelihood of a delay. Coinbase said the latest draft is unfavorable to the broader industry, citing issues such as limits on stablecoin rewards, regulation related to tokenized stocks, an expansion of the government’s access to financial records, and a weakening of the Commodity Futures Trading Commission’s (CFTC) authority.

Coinbase Chief Executive Officer (CEO) Brian Armstrong previously said, “This draft is materially worse than the current regulatory environment,” adding, “If it’s a bad bill, it’s better not to have one at all.”

The Senate Banking Committee is leaving room for further discussions and possible revisions, and whether to change the markup schedule is expected to be decided soon at the chair’s discretion.