Coinbase Blasted for 'Killing' Clarity Act as Senate Deadline Looms

Arca CIO Jeff Dorman has accused Coinbase of 'killing' the CLARITY Act in January this year, claiming that the exchange's opposition and subsequent markup flop deprived the bill of enough time to pass.

The CLARITY Act aims to provide regulatory clarity for the crypto industry, but it has faced opposition from various stakeholders. While Coinbase initially opposed the bill, citing concerns over problematic provisions, the company later distanced itself from claims that it killed the bill, saying that the current version is 'vastly improved'.

However, Arca's Dorman disputed this claim, stating that without Coinbase's opposition and subsequent markup flop in January, the bill would have had enough time to pass. He also noted that the Senate was expected to go on recess from August 6th and return on September 14th, leaving only a short window for the bill's passage.

As a result of this tight timeline, the bill's passage odds slipped to 25%. However, analysts at Bernstein warned that failure to pass the bill would trigger a sell-off in the crypto market. On the other hand, if the bill stalls, regulators such as the SEC are expected to accelerate rulemaking efforts for the sector.