CLARITY Act gains momentum as Coinbase signals compromise
CLARITY Act advances as industry talks narrow disagreements
Momentum for a major crypto market-structure bill has accelerated amid intensive, clause-level negotiations that aim to bridge long-standing disagreements between banks, exchanges and lawmakers. Sen. Bernie Moreno estimated a potential congressional resolution in roughly one month, while executives and policy aides described recent forums as shifting the debate from broad principles to committee-ready drafting.
At a recent convening hosted by World Liberty Financial, participants from exchanges, banks and Capitol Hill focused on technical fixes to preserve bank funding models while enabling compliant on-ramps for crypto platforms. Coinbase CEO Brian Armstrong, who had earlier withdrawn public support over restrictive language, said negotiators are now exploring compromise pathways that would clarify regulator roles and consumer protections — reducing a key public obstacle to progress.
The legislative calendar has been uneven: a planned committee markup was pulled after wavering backers, and negotiators have shifted to producing narrowly tailored amendments that could be folded into future markups. The White House has organized a targeted convening through its digital-assets advisory channels to press for clause-level compromises, and some Senate staffers are weighing procedural levers — including conditioning an effective date on the Commodity Futures Trading Commission having a quorum — to align confirmation and legislative timelines.
Market indicators have reflected the uncertainty and renewed momentum. Decentralized prediction markets briefly bid up the CLARITY Act’s chances (Polymarket odds spiked before normalizing), while spot crypto products have continued to register inflows as firms balance commercial demand against policy risk.
Core pressure points persist: whether stablecoins may carry repeat reward or yield-like features, and which federal agency will have primary supervisory authority. Those two items are dominating private bargaining and have shaped how backers draft compromise language acceptable to both banks and crypto firms.
Procedurally, negotiators are now focused on generating committee-ready text — particularly for Agriculture or Banking subcommittees — and converting private assurances into enforceable statutory clauses rather than voluntary commitments. Lawmakers and administration officials have emphasized interagency coordination between the SEC and CFTC as a way to reduce overlapping jurisdictional signals.
For industry participants, the immediate consequence is operational: many project teams are pausing large rollouts or tightening communications while text is settled, even as larger incumbents and well-capitalized firms continue to press forward with alternative, regulation-resilient builds. International developments, including Europe’s MiCA rollout, are nudging some teams to prioritize jurisdictions with clearer rules.
What happens next will be driven by drafting milestones, White House convenings, and the timing of committee markups and confirmation votes. If negotiators can translate narrow, technically precise compromises — limiting harmful yield mechanics and clarifying supervisory roles — the bill could quickly regain momentum and materially reduce litigation and operational risk for custodians, banks and exchanges.
- Participants: exchange executives, bank representatives, lawmakers, White House and agency officials
- Primary disputes: yield-like stablecoin products, regulator designation, custody definitions
- Near-term mechanics: clause-level drafting, targeted White House convenings, committee-ready amendments
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