Analysis: Industry insiders are expressing outrage over the Clarity Act, criticizing it for making too many concessions to traditional financial insti...
TL;DR
The Senate Banking Committee canceled a hearing on the CLARITY Act amendments amid industry backlash over concessions to traditional finance. Critics argue the bill favors banks, while Democrats push for ethical rules on crypto profits. No reschedule date was set, with further delays expected due to holidays.
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According to ChainCatcher, the Senate Banking Committee has canceled its scheduled hearing on the CLARITY Act (Crypto Market Structure Act) amendments, originally scheduled for Thursday. Crypto journalist Eleanor Terrett revealed that, in addition to Coinbase leading the way by withdrawing its support for the draft bill, industry discontent erupted on Wednesday. They complained that lawmakers made too many concessions to banks and traditional financial institutions after proposing amendments to a 278-page bill, particularly regarding stablecoin yields and tokenization.
Critics argue that the CLARITY Act itself favors traditional institutions. Meanwhile, some Democrats insist on ethical guidelines for senior government officials, including the president, prohibiting them from profiting from cryptocurrency projects; Democrats have previously stalled with the White House on this issue.
In a statement announcing the postponement of the meeting, Senate Banking Committee Chairman Tim Scott said, "Everyone is still working sincerely at the negotiating table," but did not specify when the committee would reschedule its deliberations. The Senate is adjourned next week for Martin Luther King Jr. Day and will reconvene the week after. The Senate Agriculture Committee is expected to hold deliberations at that time, which had already been postponed from this Thursday.