Gnosis and Coinbase Criticize CLARITY Act Over Threat to Crypto Autonomy
The U.S. CLARITY Act seeks to establish a digital-asset market framework and delineate the responsibilities of the SEC and CFTC, making it pivotal to securing federal regulatory certainty for the crypto industry. Gnosis co-founder Friederike Ernst warned that forcing transactions through intermediaries such as banks or exchanges could erode users’ ability to hold and trade assets independently.
Coinbase withdrew its support on January 14, 2026, citing provisions that restrict DeFi, tokenized equities and the distribution of stablecoin yields. The Senate Banking Committee postponed its review the following day. BitMart later warned that more than 100 amendments could stifle DeFi, while the industry fears that failure to pass the bill before May 2026 could lead to a prolonged delay because of the midterm elections.
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The history behind this eventRevised CLARITY Act Draft Due Next Week as Ethics Dispute Persists
The Digital Asset Market Clarity Act, known as the CLARITY Act, is designed to establish a US regulatory framework for crypto markets and clarify oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Its treatment of token issuers, trading platforms and decentralized-finance developers could determine whether the industry gains the legal certainty it has sought, making the bill a central test of bipartisan support for crypto legislation.
Senators are expected to release a consolidated draft as soon as next week, with sponsors seeking Senate consideration by the end of July. Negotiators remain divided over conflict-of-interest provisions and vacancies at key regulatory agencies, while a revised ethics rule would expire in 2029. Law-enforcement officials have also proposed changes as the voting window narrows. A DeFi safe harbor shielding developers who do not control customer assets from custodial liability has secured public backing from Democratic senators.
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