"The Clarity Act, which would regulate and further legitimize digital assets, inched closer to passing after a Senator pulled out of a contested amendment to the bill. Republican Roger Marshall backed out of a politicaly-charged provision that would force credit cards to compete on swipe fees, according to Politico. Last week, Senator Marshall filed the amendment about credit card fees but over the weekend said he would let go of the provision, Politico reported, citing anonymous sources."
"The legislation was supposed to pass without too much of a hitch, but it encountered an unexpected hurdle this month when Coinbase CEO Brian Armstrong, one of the most prominent figures in the crypto industry, pulled his support of the bill. He opposed the legislation's prohibition of customers earning yield on stablecoins. His surprise rebuke of the bill sparked infighting between him and a number of other crypto leaders, who backed the bill."
"The discord surrounding the bill compounds headwinds facing the crypto industry during a rough few months that have seen prices fall significantly. Bitcoin is down roughly 31% since its all-time high in October. Ethereum and Solana are down roughly 40% and 50%, respectively, from their highs last year. This decline comes in spite of Trump's more favorable policies toward the sector. In July, he signed the Genius Act, which set a regulatory framework for stablecoins."
The Clarity Act seeks to regulate and integrate blockchain-based assets and technologies into the broader financial system and has drawn bipartisan support. Senator Roger Marshall withdrew a politically charged amendment that would have forced credit-card companies to compete on swipe fees, removing a potential obstacle to the bill's progress. Coinbase CEO Brian Armstrong withdrew support over a prohibition on customers earning yield on stablecoins, triggering infighting among crypto leaders. Cryptocurrency prices have fallen sharply in recent months: Bitcoin about 31% down from its October high, Ethereum roughly 40% down, and Solana about 50% below last-year highs. Prior policy moves included the Genius Act establishing a stablecoin framework.
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