Analysis: Industry professionals express dissatisfaction with the CLARITY Act, criticizing excessive concessions to traditional financial institutions

The Senate Banking Committee has canceled the scheduled hearing on Thursday for the CLARITY Act (the Crypto Market Structure Act) revisions. According to crypto journalist Eleanor Terrett, dissatisfaction among industry players erupted this Wednesday, with Coinbase leading the way in announcing its withdrawal of support for the bill. They complained that lawmakers made excessive concessions to banks and traditional financial institutions after proposing amendments to a lengthy 278-page bill, particularly regarding stablecoin yields and tokenization.

Critics argue that the CLARITY Act itself is already biased in favor of traditional institutions. Meanwhile, some Democrats insist on establishing ethical standards for senior government officials, including the president, to prohibit them from profiting from cryptocurrency projects. Democrats have previously been at an impasse with the White House on this issue.

Currently, Banking Committee Chairman Tim Scott stated in a statement announcing the postponement of the meeting that "everyone is still working sincerely at the negotiating table," but did not reveal when the committee would reschedule the review. The Senate will be in recess next week for Martin Luther King Jr. Day and will reconvene the following week. During that time, the Senate Agriculture Committee is expected to hold a review, which had also been postponed from this Thursday.