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Senate Pauses Crypto Market Bill as Stablecoin Fight Splits Industry

Stablecoin reward limits have emerged as the chief obstacle to reviving the bill.

Overview

  • Senate Banking postponed its CLARITY Act markup, with Chair Tim Scott calling it a brief pause as talks continue in good faith.
  • Coinbase withdrew support hours before the markup, citing limits on stablecoin rewards, tokenized equities concerns, DeFi language, and SEC/CFTC balance.
  • Ripple, a16z, Kraken, Coin Center, Circle and the Digital Chamber urged lawmakers to proceed with the markup and keep negotiating rather than abandon the effort.
  • A White House adviser accused Senate Banking Democrats of bad faith, alleging plans to block or gut the bipartisan draft before the delay.
  • Insiders say the tokenized securities section (Section 505) could be revised or removed as negotiations continue, and crypto stocks and coin prices fell after the postponement.