The Senate Banking Committee shelved its planned markup of the nearly 300-page Clarity Act this week after Coinbase CEO Brian Armstrong publicly withdrew the company’s backing for the draft legislation. Armstrong cited several provisions that he argued would hinder Coinbase products, including language he described as a de facto ban on tokenized equities and restrictions on stablecoin reward programs. The postponement marks the first significant legislative delay for this market-structure bill since its introduction in late 2025.

Shares of Coinbase experienced notable volatility following the announcement, falling sharply in Thursday trading before rebounding partially on Friday. The stock’s intraday swing exceeded its typical two-percent trading range, reflecting investor concerns over regulatory uncertainty. Market observers noted that this setback interrupted a crypto price rally that had lifted Coinbase and peer platforms earlier in the week.

A central point of contention revolves around stablecoin reward programs, which banks argue could divert hundreds of billions in deposits from traditional lenders. The Clarity Act draft would restrict rewards that resemble bank savings yields, a measure Armstrong and other crypto executives say creates an uneven playing field. Lawmakers are also debating whether to clarify the Securities and Exchange Commission’s and Commodity Futures Trading Commission’s respective oversight roles—a debate compounded by an ethics proposal to bar senior officials from profiting in crypto ventures, which Senate Banking Chair Tim Scott has deemed outside his panel’s jurisdiction.