Overview
- Senate Banking’s markup of the CLARITY Act remains on hold after Coinbase withdrew support over provisions limiting stablecoin yield.
- In Davos, CEO Brian Armstrong says he is meeting bank chiefs to seek a “win‑win” and announced a Bermuda partnership to build a fully on‑chain national economy using Coinbase and Circle infrastructure.
- Patrick Witt, who leads the President’s crypto advisory council, cautioned that rejecting an imperfect bill now could invite tougher rules later and asserted that a market‑structure law is inevitable.
- The core dispute centers on how the statute treats yield and rewards on stablecoins, with the latest draft curbing reserve‑derived payouts and allowing only activity‑based incentives.
- Reporting described senior officials as angered by Coinbase’s withdrawal and considering pulling support for the bill, as a new inspector general alert warned the measure could strain the CFTC’s capacity.