Senate Delay Clouds CLARITY Act, US Crypto Future and Reform

Senate delays CLARITY Act markup after contentious stablecoin amendment splits supporters and prompts Coinbase pullback, while global regulators advance new crypto rules

  • The Senate Banking Committee postponed a January markup on the Digital Assets Clarity (CLARITY) Act, creating uncertainty about its near-term progress.
  • Contentious amendments—most notably a change to the GENIUS Act restricting stablecoin interest—split supporters and prompted Coinbase to withdraw backing.
  • Multiple paths remain: rapid resolution, extended debate, an incremental legislative approach, or delay until after the 2026 midterms.
  • Regulators worldwide continued to advance crypto rules, including new UK authorisation details, tighter Indian KYC guidance, Swiss custody guidance, Dubai token rules, and Thailand’s Travel Rule rollout.

The Senate Banking, Housing, and Urban Affairs Committee unexpectedly postponed a January markup of the Digital Assets Clarity (CLARITY) Act after a contentious amendment process on January 14. The bill, which passed the House in July 2025, seeks a federal framework for crypto markets and assigns roles to the CFTC and SEC, while focusing on consumer protection and market integrity. The White House has framed CLARITY as central to a strategy to strengthen U.S. leadership in digital finance (policy).

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Committee chair Sen. Tim Scott delayed the markup after more than 100 proposed amendments proved divisive, while the Senate Agriculture Committee plans its own markup later in January (schedule). A highly contested amendment, backed by the banking industry, would change the GENIUS Act to bar exchanges and platforms from paying interest on stablecoin holdings (details). In response, Coinbase said it would withdraw support if that provision remains (report).

Other disputes include the treatment of decentralized finance and questions over addressing conflicts of interest tied to senior officials (DeFi concerns, conflict issues). Lawmakers may pursue several routes: resolve issues quickly, allow extended debate, pass targeted laws, or see action slip past the 2026 midterms.

Meanwhile, global regulators advanced measures: the UK published its new gateway authorisation approach (FCA details); India tightened KYC and onboarding guidance (guidance); Swiss regulator FINMA issued custody guidance (guidance); Dubai’s DFSA token rules took effect (framework); and Thailand announced Travel Rule implementation for registered firms (Gold-and-crypto/”>announcement). The U.S. Treasury’s work on GENIUS Act implementation also continues (press release).

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