The US senator has hinted that the Crypto Market Structure Draft may be delayed
Debate over DeFi and stablecoin reward provisions in the CLARITY Act threatens to hold back the bill as banking and crypto stakeholders push competing agendas.
US Senator Cynthia Lammis expects the US Senate Banking Committee to delay hearings on the crypto market structure legislation after Coinbase withdrew its support for the bill.
There was some grumbling about the delay in the Senate amendment to the CLARITY Act on Wednesday, which escalated following a post from Bloomberg reporter Steven Dennis on Wednesday evening:
“Lummis told me her advice and the expectation now is for the marker to be pulled. It's Bank Chairman Tim Scott's call.” The Senate marker is scheduled for Thursday at 10:00 a.m. Eastern Time. Cointelegraph reached out to Scott's office for comment, but did not immediately receive a response.
Lawmakers have been deliberating for several weeks on the CLARITY Act's provisions, along with members of the banking and crypto industry.
Coinbase points out several issues with a recent article
However, Coinbase pulled its support for the account on Wednesday, stating that the latest article was not suitable for the industry.
In addition to killing stablecoin rewards, Coinbase CEO Brian Armstrong has expressed concerns about limiting tokenized shares, government access to unlimited financial records, and the U.S. commodity regulator receiving less authority over crypto markets than intended.
“This version would be materially worse than the current one. We'd rather have no bill at all than a bad bill. We all hope we can get to a better draft.”
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A lot is online for both crypto and banking.
Passing the bill without appropriate provisions could have a significant impact on Coinbase's balance sheet, with statscoin revenue of $247 million in Q4 in addition to $154.8 million from blockchain rewards.
Banking industry advocates say allowing stablecoin rewards could hurt them even more, with the Treasury Department estimating last April that widespread stablecoin adoption could take $6.6 trillion out of the traditional banking system.
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