Last week, Coinbase publicly withdrew its support for the CLARITY Act (Clear Accountability for Digital Assets Markets Act), causing a delay in Senate Banking Committee deliberations. Sources now say the committee needs at least several more weeks before resuming the legislative process. While Coinbase's exit triggered the impasse, the core issue remains unresolved tensions between traditional financial institutions and the crypto industry.
White House Pushes Compromise: Stablecoin Yield Provision at Center
According to CoinDesk citing insiders, Republican members of the Banking Committee and the White House have made it clear that the crypto industry—led by Coinbase—must quickly reach a consensus with banks on a “stablecoin yield provision”. This provision would prohibit crypto platforms from offering interest, rewards, or other yields on stablecoins. Wall Street banks argue such yields would drain deposits and threaten their survival; Coinbase counters that the provision would undermine platform revenue and competitiveness. Patrick Witt, executive director of the White House Digital Assets Advisory Committee, warned on X that if the industry misses the current “GOP trifecta” (Republicans controlling the White House, Senate, and House), a future Democrat-led bill could be even harsher.
Banking Committee Shifts to Housing; Agriculture Committee Goes Solo
Bloomberg reported Wednesday that the Banking Committee will prioritize housing issues following President Trump's call for institutional investors to exit the housing market to lower costs. Thus, the CLARITY Act is sidelined. Meanwhile, the Senate Agriculture Committee—which oversees commodities—released its own crypto market structure bill on Wednesday. However, that version is highly partisan and faces significant risk of failure without Democratic support and a companion bill from the Banking Committee.
Industry Stances and Outlook: Supporters vs. Opponents
As of January 2026, institutions supporting the current CLARITY Act include Andreessen Horowitz (a16z), Circle, Paradigm, Kraken, and Ripple. Opponents or those who have withdrawn support include Coinbase and the Blockchain Association. Despite setbacks, observers remain cautiously optimistic. Sources suggest that if the Banking Committee can pass its version by late March (before the Easter recess) and secure a full Senate vote by July 4 (Independence Day), the House would still have time to finalize legislation in September or during the lame-duck session after the midterm elections.