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<p>Crypto market analyst Michaël van de Poppe argues that blocking the CLARITY Act in its current form may have spared the industry from long-term damage. Rather than delivering clarity, he says the draft risked locking restrictive rules into law at a moment when crypto markets are still evolving.</p>
<div class="light-yellow-block">
 <p><strong>Key Takeaways</strong></p>
 <ul>
  <li><strong>The stalling of the CLARITY Act may ultimately benefit crypto markets by preventing restrictive rules from becoming law.</strong></li>
  <li><strong>Coinbase’s withdrawal highlighted concerns over tokenized stocks, stablecoin yields, and user data access.</strong></li>
  <li><strong>Analysts see the pause as a chance to reset negotiations and push for a more balanced US crypto framework.</strong></li>
 </ul>
</div>
<p>In that context, the bill’s loss of momentum is being interpreted as a reset rather than a defeat.</p>
<h2 id="coinbase-pulls-the-plug">Coinbase pulls the plug</h2>
<p>The legislative push unraveled after Coinbase withdrew its backing, a move that carried significant weight in Washington. The exchange’s CEO, Brian Armstrong, publicly outlined why the proposal had become unacceptable to the industry.</p>
<p>His concerns went beyond technical details. The draft included provisions that would effectively shut down tokenized equities, block yield-bearing stablecoins, and allow broad government access to user data on decentralized finance platforms. For many in the sector, those measures crossed a red line.</p>
<h2 id="a-warning-from-past-regulation">A warning from past regulation</h2>
<p>Van de Poppe compares the situation to Europe’s experience with crypto rulemaking. The EU’s Markets in Crypto-Assets framework was not passed quickly or cleanly. It took multiple rounds of negotiation, revisions, and political compromise before regulators arrived at a workable final version.</p>
<p>In his view, the US is now being forced into a similar process. That delay, while frustrating, prevents lawmakers from cementing rules that could stifle innovation for years.</p>
<div class="read-more pb-3 pt-3 pt-md-2 px-3 my-4 border bg-light">
 <h5 class="text-uppercase border-bottom mb-3 pb-1 d-none d-md-block">READ MORE:</h5> <a href="https://coindoo.com/stablecoin-flows-flash-warning-as-crypto-activity-slows/" rel="noopener noreferrer nofollow">
  <div class="contentRight col-4">
   <span> <img src="https://coindoo.com/wp-content/uploads/2025/07/market-chart-analysis-e92f923f.jpg"> </span>
  </div>
  <div class="contentLeft col-8">
   <h4 class="title mb-0">Stablecoin Flows Flash Warning as Crypto Activity Slows</h4>
  </div> </a>
</div>
<h2 id="why-alignment-matters-more-than-speed">Why alignment matters more than speed</h2>
<p>Passing a federal crypto market structure law remains a central goal for the industry and its allies in Congress. Clear rules are seen as essential for scaling onchain finance in the US. But van de Poppe argues that speed should not come at the expense of alignment.</p>
<p>With the bill stalled, regulators, lawmakers, and industry leaders are now under pressure to reopen negotiations and produce a framework that supports growth rather than restricts it.</p>
<p>For markets, that distinction matters. A bad law can weigh on sentiment far longer than no law at all. From that perspective, the collapse of the CLARITY Act may be less of a setback – and more of a necessary pause before a better version emerges.</p>
<p><iframe loading="lazy" title="The Clarity Act is Dead — What I'm Buying Now" src="https://www.youtube.com/embed/hxhmH0cXraM" width="100%" height="463" frameborder="0" allowfullscreen sandbox="allow-scripts allow-same-origin allow-popups allow-forms">&amp;amp;lt;span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"&amp;amp;gt;&amp;amp;amp;#65279;&amp;amp;lt;/span&amp;amp;gt;</iframe></p>
<p style="text-align: center;"><em><strong>The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or <a rel="noopener noreferrer nofollow">cryptocurrency</a>. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.</strong></em></p>
<p>The post <a href="https://coindoo.com/why-the-clarity-bill-stalling-could-be-good-for-crypto/" rel="noopener noreferrer nofollow">Why the CLARITY Bill Stalling Could Be Good for Crypto</a> appeared first on <a href="https://coindoo.com" rel="noopener noreferrer nofollow">Coindoo</a>.</p>

Why the CLARITY Bill Stalling Could Be Good for Crypto

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