US lawmakers make stunning pivot on major cryptocurrency bill in final moments: 'Unfortunately can't support'

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In a dramatic turn on Capitol Hill in January, U.S. lawmakers abruptly postponed a scheduled vote on a high-profile cryptocurrency bill just hours before it was to be considered by the Senate Banking Committee.

The Digital Asset Market Clarity Act, often referred to as the Clarity Act, is expected to be a big step toward a comprehensive regulatory framework for digital assets in the United States.

According to The New York Times, the delay followed Coinbase’s chief executive, Brian Armstrong, publicly withdrawing the exchange’s support for the legislation in its existing form.

Armstrong argued that the bill contained provisions that would chip away at the Commodity Futures Trading Commission’s authority and give the government access to investors’ personal details, among other issues.

“Coinbase unfortunately can’t support the bill as written,” Armstrong said in an X post.

Senate Banking Chairman Tim Scott (R-South Carolina) announced late Wednesday that, in light of the industry pushback and ongoing negotiations among committee members, the markup session would be postponed.

Members of both political parties have signaled a desire to continue working toward bipartisan agreement, though no new date has been firmly set.

The rapid growth of the cryptocurrency industry has sparked debate over its environmental footprint.

Certain cryptocurrencies, particularly those that rely on energy-intensive “proof of work” mechanisms, such as Bitcoin, have been criticized for massive electricity consumption and associated pollution.

This concern has drawn scrutiny from environmentalists and regulators alike, who argue that without substantial clean energy adoption, such practices could chip away at climate goals.

At the same time, proponents say the broader crypto ecosystem could align with sustainability objectives.

Some mining operations are increasingly powered by renewable energy sources, such as hydropower and wind, and advocates say blockchain technology could finance clean energy projects or improve grid efficiency. Such nuance is why the industry is so complex.

Whether the stalled legislation can be revitalized in the coming weeks remains an open question. Lawmakers and industry representatives are interested in pursuing talks, but significant policy disagreements pose a significant hurdle.

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