The CLARITY Act Failing To Advance Is Good for the Crypto Industry: Analyst

The failure of the CLARITY crypto market structure bill to advance in the United States Congress is positive for crypto markets and the industry, according to market analyst Michaël van de Poppe. 

Van De Poppe cited crypto exchange Coinbase on Wednesday and Coinbase CEO Brian Armstrong’s X listing several concerns with the most recent version of the bill.

The issues included a “de facto ban” on tokenized stocks, government access to user records on decentralized finance (DeFi) platforms and prohibiting , Armstrong said. Van De Poppe :

“I think if the bill were approved in its current form, it would have had a very bad impact on the markets in general. So, now, all the parties are aligned to continue the discussion. It reminds me a lot of the Markets in Crypto Assets (MiCA) regulations in Europe.” 

MiCA, a comprehensive (EU), also took several rounds of negotiations and revisions before the final version was passed into law, according to Van De Poppe.

Passing a crypto market structure framework in the US is a of the crypto industry and its Congressional allies, who are pushing for clear rules of the road for onchain finance.

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The White House for the CLARITY Act in response to Coinbase withdrawing its support for the legislation, independent crypto reporter Eleanor Terrett on Saturday.

Armstrong and said negotiations to draft a version of the bill that would satisfy the crypto industry and community banks are ongoing.

The White House has been “super constructive,” during the process, Armstrong . His post drew a flurry of responses that were critical of the banking sector and the prohibition on yield-bearing stablecoins.

“Don’t let them kill stablecoin yield. That would set back stables for a generation. Hold the line,” venture capitalist Nic Carter . 

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