Crypto regulation in the United States seemed close to completion, but the road lengthens again. Debates around the CLARITY Act, supposed to provide a clear legal framework for the digital assets market, face irreconcilable visions. Between promises of framed innovation and fears of excessive control, positions harden. In Washington, unity now seems out of reach; it will take time before the legislative fog clears.
In Brief
- •The CLARITY Act aims to frame crypto and clarify the competencies of the SEC and CFTC.
- •Coinbase withdraws its support, causing the vote to be postponed and revealing internal divisions.
- •Stablecoins become the core of the conflict between banks, regulators, and crypto platforms.
The CLARITY Act: A Tug of War Over Regulation
Sponsored by Republican Senator Tim Scott, the CLARITY Act seeks to redefine the playing field for the crypto industry. Officially, the text aims to protect investors and ensure national security, according to the Senate Banking Committee note. For its authors:
This bill replaces uncertainty with clarity, strengthens law enforcement against malicious actors, and offers modern protections to customers, investors, and the financial system.
Behind this rhetoric, criticism is rising. Actors like Galaxy Digital warn of a possible extension of the U.S. government’s surveillance power over crypto users. Provisions concerning DeFi and stablecoins divide opinion: the text bans passive yields on stablecoins while allowing rewards for specific actions such as payments or loyalty.
A tweet discussing the implications of the CLARITY Act.
Link to tweet
For the United States, this project marks a turning point: it aims to integrate crypto into traditional regulation. But it also risks stifling what it claims to save.
Coinbase's Opposition Stalls the CLARITY Act Vote
The rift opened the day before the vote. Coinbase, the main American crypto exchange, abruptly withdrew its support for the project. Its CEO, Brian Armstrong, tweeted his disagreement: the text contains “too many problems” and would represent “a bad bill“. He claims the United States should not ban rewards on stablecoins nor undermine the authority of the CFTC.
Brian Armstrong's tweet about the CLARITY Act.
Link to tweet
This significant withdrawal immediately shook the political agenda. The Senate Banking Committee postponed its vote, revealing the extent of internal disagreements. For many, Coinbase’s abandonment illustrates the crypto industry’s inability to speak with a single voice despite years of lobbying and millions spent on pro-crypto campaigns.
Meanwhile, traditional banks continue to influence the debate, firmly opposing yield programs on stablecoins. In their view, these products threaten the stability of the financial system and encourage a withdrawal of deposits from the traditional banking network.
Crypto Regulation Becomes a Political Battleground in the US
As the text stalls, its stakes go beyond mere regulation. The CLARITY Act has become a symbol: that of an America torn between innovation and control. Republicans, led by Tim Scott, emphasize the need to keep crypto innovation on American soil. Democrats fear a law written by and for the industry.
In the background, another battle is playing out. Former President Donald Trump positions himself as the “crypto president,” promising a pro-innovation environment and a return of capital flows to the United States. With the 2026 midterm elections in sight, each camp politicizes crypto to win over Web3 entrepreneurs and investors.
Analysts see this as an inevitable evolution: crypto is no longer a technical issue but a political lever. Washington is no longer just debating a bill but the economic model of the future.
CLARITY ACT – Key Facts to Remember
- •The text aims to define digital assets as securities or commodities;
- •It shares supervision between the SEC and the CFTC;
- •The vote was postponed after Coinbase withdrew support;
- •The project bans passive yields on stablecoins, allowing only usage rewards;
- •Banks and crypto platforms clash over the future of digital yield.
While the United States bogs down in debates, Europe is moving faster. In France, nearly 90 crypto players are under surveillance ahead of the MiCA regulation’s entry into force. Those who do not adapt their compliance risk seeing their regulatory future seriously compromised.