Eco CEO Says Crypto Market Infrastructure Bill Fail Exposes Critical Gap Between Policymakers and Digital Asset Innovators

The U.S. Senate Banking Committee has postponed a key markup session for the Digital Asset Market Clarity Act, delaying progress on what many had seen as a pivotal legislative effort to establish a clear regulatory framework for digital assets. The decision came after Coinbase CEO Brian Armstrong announced the company could not support the bill as written, citing issues with provisions that would "kill rewards on stablecoins" and create barriers for tokenized equities according to reports.

The bill, which aims to divide regulatory oversight between the SEC and CFTC, has been a focal point of bipartisan negotiations. However, late-stage amendments and shifting positions from key industry stakeholders have created uncertainty. Senator Tim Scott, the chair of the committee, said all parties remain at the table, working in good faith to refine the legislation as reported.

The push to finalize the bill gained urgency as the 2026 midterm elections approached. The House passed its version last year, and Senate Banking now needs to reconcile its version with the House bill. However, the delay suggests that reaching a consensus on critical issues—such as stablecoin interest and DeFi regulation—remains a challenge according to analysis.

Why Did This Happen?

The primary point of contention centers around stablecoin yields and DeFi provisions. Banks and traditional financial institutions have long lobbied for restrictions on interest-bearing stablecoins, arguing they could siphon deposits away from traditional lending channels. Bank of America CEO Brian Moynihan warned that up to $6 trillion in deposits could shift to stablecoins if Congress does not act according to CEO statements.

Industry leaders, including Coinbase's Brian Armstrong, argue that these provisions could stifle innovation and push activity to offshore jurisdictions. Coinbase cited a "de facto ban" on tokenized equities and restrictions on stablecoin rewards as key reasons for its withdrawal of support as reported by crypto media.

The delay raises concerns about U.S. competitiveness in the global crypto market. As the European Union and other jurisdictions finalize their own regulatory frameworks, the U.S. risks falling behind if it fails to create a clear and enforceable regulatory environment. Arjun Sethi, co-CEO of Kraken, warned that waiting too long could allow other countries to set the standard for digital asset innovation according to market analysis.

The Senate Agriculture Committee also postponed its markup of the bill, adding another layer of uncertainty. Committee Chairman John Boozman cited the need to finalize details and ensure broad support as stated.

Experts note that even if a final version of the bill is passed, the rulemaking process could take years. The legislation requires 45 separate rulemakings to be fully implemented, with some provisions potentially lasting through the next presidential term according to legal analysis.

How Do Stakeholders View the Bill?

Supporters, including major venture firms and exchange operators, argue that the bill provides necessary clarity and will protect the U.S. financial system from regulatory arbitrage. They believe it will prevent a future FTX-style collapse by imposing clear oversight according to Senate leadership.

Critics, however, warn that the bill could weaken investor protections and create new loopholes. The Digital Chamber, a crypto advocacy group, emphasized the need to revise key sections that could harm DeFi platforms and software developers according to legal commentary.

The bill's future remains uncertain. While some industry leaders continue to push for a markup, others are calling for a more deliberate approach. With the midterm elections approaching, the political calculus for passing the bill before the end of the year is growing more complex.

The next step will likely involve renewed negotiations between lawmakers, industry representatives, and traditional finance stakeholders. Until key issues—such as stablecoin yields, DeFi protections, and regulatory jurisdiction—are resolved, the CLARITY Act will remain on hold according to legislative updates.