Industry Divided on Digital Asset Market Clarity Act
A growing rift has emerged within the US crypto industry over the proposed Digital Asset Market Clarity Act (CLARITY Act), with some industry heavyweights urging lawmakers to move forward with the bill. In contrast, others argue that its current form could do more harm than good.
Crypto builders need clear rules of the road.
Over the past five years, Republicans, Democrats, and the Trump Administration have worked closely with members across the crypto industry to protect decentralization, support developers, and give entrepreneurs a fair shot.
At its…
— Chris Dixon (@cdixon) January 15, 2026
Chris Dixon, managing partner at a16z Crypto, defended the legislation, stating that the industry urgently needs regulatory clarity. He added that lawmakers from both parties, alongside the Trump administration, have spent years engaging with the industry to protect decentralization, empower developers, and foster innovation.
While acknowledging the bill’s shortcomings, Dixon argued that pushing it forward is crucial if the US wants to remain a global hub for crypto development.
The divide became more visible this week after the Senate Banking Committee delayed its planned markup of the bill, originally scheduled for Thursday, to allow for further negotiations.
Coin Center’s executive director, Peter Van Valkenburgh, echoed a similar sentiment, noting that the organization remains optimistic about the direction of the current draft.
Coinbase Leads Opposition, Warns Bill is "Worse Than No Regulation"
Not everyone agrees. Coinbase, the largest crypto exchange in the US, has withdrawn its support for the CLARITY Act, sparking intense debate across the sector.
CEO Brian Armstrong said the Senate Banking draft contains “too many issues” to be backed in its current form. He cited concerns ranging from restrictions on tokenized equities and DeFi to expanded government access to financial data, weakened privacy protections, and provisions that could tilt regulatory power toward the SEC at the expense of the CFTC.
Bitwise Invest’s head of research, Ryan Rasmussen, backed Coinbase’s stance, arguing that the draft legislation would negatively impact tokenization, stablecoins, privacy, innovation, and users across the ecosystem.
Crypto lawyer Jake Chervinsky acknowledged the bill’s flaws but struck a more hopeful tone, suggesting that upcoming markups and floor debates could significantly reshape the text.
Venture capitalist Tim Draper went further, claiming the compromise draft appears influenced by traditional banking interests and should be rejected outright in its current form.