Senate Agriculture Committee postpones crypto bill markup to late January as Coinbase threatens to pull support over stablecoin yield restrictions.
The CLARITY Act, the landmark crypto market structure bill, hit a snag as the Senate Agriculture Committee postponed its markup to late January, signaling lawmakers have not yet secured the votes needed to advance the legislation.
Senate Agriculture Committee Chairman John Boozman announced his committee will postpone its planned markup of the Digital Asset Market Clarity Act until the last week of January. The delay aims to preserve bipartisan support for the legislation, which passed the House in July 2025 with a vote of 294 to 134.
The Senate Banking Committee proceeded with its January 15 markup deadline, releasing a tentative draft. However, the draft includes provisions that have divided the crypto industry, particularly around stablecoin yield. The legislation bans stablecoin rewards on deposits via service providers, permitting only activity-based rewards.
The stablecoin yield restriction has triggered strong industry pushback. Coinbase CEO Brian Armstrong threatened to pull support for the bill if rules around stablecoin rewards are tightened, arguing the restrictions favor traditional banks over crypto platforms. Armstrong called the stablecoin yield ban a "dealbreaker" for the industry.
Kraken co-CEO Arjun Sethi took a different stance, posting on X that he supports the bill despite its flaws. "Walking away now would not preserve the status quo in practice," Sethi wrote, urging the industry to accept compromise language rather than risk losing the legislation entirely.
The CLARITY Act could advance out of committee without Democratic support if Republicans vote together. However, the final merged package would still require 60 votes on the Senate floor, making bipartisan backing essential. Industry observers expect negotiations to continue through late January, with a floor vote possible in February if committees reach consensus.
The CLARITY Act delay reflects the difficult balance between regulatory clarity and industry interests. Whether Congress can deliver crypto market structure legislation in 2026 may depend on resolving the stablecoin yield dispute in the coming weeks.
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Senator Boozman postpones Digital Asset Market Clarity Act from January 15 to final week of January to secure bipartisan support.
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