Crypto Regulation Stalemate: Who Will Draft the Next Bill?

The CLARITY Act, which aimed to regulate digital assets in the US, has failed after its final vote. The bill was met with opposition from various stakeholders, including banks and law enforcement agencies.

Senator Elizabeth Warren, seen as a crypto adversary, still wants a seat at the rulemaking table. Since the Senate version of the bill was rejected in January, several groups have been seeking to participate in drafting the legislation.

Coinbase CEO Brian Armstrong said that he opposed submitting the draft bill initially due to its numerous flaws regarding decentralized finance (DeFi), tokenization, and stablecoin yield-related clauses. After revisions, all four issues were addressed, making it a 'much better piece of legislation.'