The U.S. Senate Banking Committee has postponed its highly anticipated markup of the Digital Asset Market CLARITY Act, bringing an unexpectedly quiet close to what had been billed as a decisive week for U.S. crypto regulation. The delay, first reported by Crypto in America, follows growing industry backlash and unresolved political disagreements, casting fresh uncertainty over the bill’s legislative path and highlighting the fragile consensus surrounding federal crypto policy momentum.

Pressure mounted throughout the week as crypto firms and trade groups objected to late-stage amendments added to the sprawling 278-page proposal. Industry critics argued that the changes tilted the bill in favor of banks and traditional financial institutions, particularly through stricter limits on stablecoin rewards and tokenization models. At the same time, Democratic lawmakers continued to push for tougher ethics rules aimed at preventing senior government officials, including the president, from personally profiting from crypto ventures—an issue that has repeatedly stalled negotiations with the White House and deepened the legislative stalemate.

The immediate trigger for the postponement came on January 14, when Coinbase CEO Brian Armstrong publicly withdrew the company’s support for the bill. Coinbase, one of the most influential voices in Washington’s crypto policy debates, has invested heavily in advocating for a comprehensive market structure framework. Writing on X, Armstrong said the latest version of the bill would be “materially worse than the current status quo,” adding that Coinbase would “rather have no bill than a bad bill,” a stance that significantly altered the political calculus.

Coinbase’s exit marked a major blow to the bill’s prospects. Losing backing from such a prominent industry player risked signaling to undecided senators that the legislation lacked sufficient consensus within the crypto sector, increasing the likelihood of delay or abandonment. However, the withdrawal did not trigger a full industry retreat. Firms and advocacy groups including a16z, Circle, Paradigm, Kraken, Ripple, Coin Center, and the Digital Chamber reaffirmed their support for moving ahead with a markup, underscoring divisions within the sector but also a shared desire for regulatory clarity.

Announcing the delay, Senate Banking Committee Chairman Tim Scott said that “everyone remains at the table working in good faith,” though he offered no timeline for rescheduling or details on the remaining points of contention. The Senate is set to break for the Martin Luther King Jr. Day recess before returning the following week, further compressing an already crowded legislative calendar.

Meanwhile, the Senate Agriculture Committee—which shares jurisdiction over elements of the bill related to spot market oversight and the Commodity Futures Trading Commission—is still expected to hold its own markup later this month. Whether the Banking Committee’s pause will affect that schedule remains unclear, adding another layer of uncertainty to the bill’s trajectory.

The CLARITY Act, modeled on the House-passed H.R. 3633, aims to establish a comprehensive federal framework for digital asset markets by dividing oversight between the Securities and Exchange Commission and the CFTC, setting standards for payment stablecoins, clarifying rules for decentralized finance, and protecting software developers who do not custody customer funds. Supporters argue the bill would replace regulatory ambiguity with clear rules, strengthen anti-fraud enforcement, and encourage crypto businesses to remain onshore, while critics warn it could weaken investor protections and open the door to future systemic risk.