Van de Poppe: Overregulation Would Harm Markets, Gut DeFi…

CLARITY bill stalls after Coinbase withdraws support over tokenized stocks, DeFi user-records access and ban on yield-bearing stablecoins — analysts call the delay market-positive as negotiations continue.

  • CLARITY failed to advance in the U.S. Congress, a development seen as positive for markets by some analysts.
  • Coinbase withdrew its support for the bill after its CEO outlined concerns on social media.
  • The CEO cited a possible “de facto ban” on tokenized stocks, government access to DeFi user records, and a ban on yield-bearing stablecoins.
  • Analyst Michaël van de Poppe warned the bill in its current form would harm markets and likened the process to EU MiCA rules.
  • The White House reportedly threatened to drop support, but the CEO said negotiations with officials and banks are ongoing.

Michaël van de Poppe said the failure of the CLARITY crypto market structure bill to advance in the United States Congress is a positive for crypto markets and the industry. He made the remarks while discussing recent moves by exchanges and lawmakers, noting that parties are now aligned to continue negotiations (see his remarks on YouTube).

- Advertisement -

Coinbase withdrew support for the bill on Wednesday, and its CEO Brian Armstrong posted a list of concerns on X, including a “de facto ban” on tokenized stocks, government access to user records on decentralized finance platforms, and a prohibition on yield-bearing stablecoins. Read Armstrong’s post for the full list of issues he raised.

Van de Poppe warned the bill would have hurt markets if approved in its current form and compared the lawmaking process to the European Markets in Crypto Assets rules. He expanded on his view in a public comment, which is available in video format here.

A reporter said the White House threatened to withdraw support after Coinbase reversed course; see the report by Eleanor Terrett here. Brian Armstrong denied that talks had broken down and said negotiations to draft a bill acceptable to the crypto industry and community banks remain active; see his follow-up post here.

Critics on social platforms warned against banning yield on stablecoins. Venture capitalist Nic Carter urged lawmakers not to remove yield, saying, “Don’t let them kill stablecoin yield. That would set back stables for a generation. Hold the line,” in his post here.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Nvidia’s Huang: Software Stocks Ready to Pop

NVIDIA CEO Jensen Huang contends Wall Street misunderstands software companies, believing they will benefit...

Nvidia’s OpenAI Investment Could Be Its Last Before IPO

NVIDIA CEO Jensen Huang indicated the company's recent $30 billion investment in OpenAI may...

Bitcoin Outperforms Oil, Gold in US-Iran War Shock

Bitcoin has surged 12.1% since the onset of the US-Israeli conflict with Iran, outperforming...

Tradeweb Leads $31M Crypto Platform Crossover Series B

Tradeweb is leading a $31 million Series B in Crossover Markets, valuing the crypto...

Crypto Stocks Surge After Trump Backs Bitcoin Bill

Coinbase stock surged over 15% after former President Donald Trump expressed support for a...

Must Read

Top 8 Books Every Beginner Should Read About Cryptocurrency

Cryptocurrency and blockchain technology are filled with technical terms that beginners find challenging to understand. One of the best ways to learn about cryptocurrency...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!