Senate Banking Committee Cancels Hearing Amid CLARITY Act Dispute

The Senate Banking Committee postponed its Thursday hearing on the CLARITY Act after Coinbase withdrew support, citing excessive concessions to traditional financial institutions in recent amendments.

This cancellation highlights ongoing tensions between crypto platforms and banks, underscoring the struggle to balance innovative financial technologies with regulatory frameworks geared towards traditional finance.

Senate Postpones Due to Coinbase Pullout and Industry Resistance

The Senate Banking Committee’s decision to postpone the CLARITY Act hearing comes after prominent industry players, led by Coinbase CEO Brian Armstrong, expressed dissatisfaction with the proposed amendments. The initial support crumbled after crypto firms were dissatisfied with perceived favoritism towards traditional financial institutions. Coinbase’s withdrawal of support echoed broader industry concerns, particularly regarding changes to stablecoin yields and tokenization, seen as benefiting banks disproportionately.

Amendments to the extensive 278-page bill released earlier this week left Coinbase and others wary of the changes. Notably, Coinbase’s Brian Armstrong stated, “We’d rather have no bill than a bad bill,” critiquing the extent of concessions made to traditional banks and institutions. This sentiment resonates with some Democratic senators who advocate for ethical standards to prevent government officials from exploiting cryptocurrency projects. Resistant state members, including Senator Ruben Gallego, further stalled progress citing disrupted meeting schedules.

Market reactions highlight industry divides, with some firms supporting the bill’s passage while others, following Coinbase’s lead, opt for delay over dilution of crypto-friendly provisions. Banking Committee Chairman Tim Scott emphasized continued “sincere” negotiations, signaling efforts to reconvene amidst these challenges.

USDC Stability Amidst CLARITY Act Uncertainties

Did you know? A similar House bill iteration passed unopposed in July 2025, demonstrating rare legislative unanimity absent in the Senate’s current proceedings.

USDC’s market performance remained fairly stable despite legislative uncertainties. As of January 15, 2026, CoinMarketCap lists USDC at $1.00, with a market cap approximately $75,724,246,740.00. Recent 24-hour volume data indicates a -4.65% change, highlighting ongoing volatility. Over 90 days, USDC’s price shifted -0.02%, maintaining its peg with minimal fluctuation.

Insights from Coincu suggest ongoing regulatory ambiguities could create prolonged industry uncertainties, impacting stablecoins and decentralized financial ecosystems. With unresolved jurisdictional clarity between CFTC and SEC, potential delays in comprehensive crypto market structuring remain probable, urging careful navigation amidst evolving legislative landscapes.