The U.S. Senate is poised for a critical markup session on the CLARITY Act on Thursday, January 15, 2026, with the cryptocurrency industry deeply divided over proposed amendments. The legislation, which aims to establish a regulatory framework for digital assets, has sparked intense lobbying and public disagreement among key industry players ahead of the Senate Banking Committee's consideration.
Coinbase Global Inc. has taken a firm stance against the current version of the bill. CEO Brian Armstrong stated the exchange "cannot support the bill" with its present amendments, arguing it would be "materially worse than the current status quo." Armstrong emphasized, "We'd rather have no bill than a bad bill," while pledging to continue fighting for favorable U.S. crypto regulations. Reports suggest the banking sector has significantly influenced the bill to protect its market share.
In contrast, Ripple Labs and the Coin Center advocacy group have expressed support. Ripple CEO Brad Garlinghouse called the CLARITY Act "a success for the crypto industry," believing any issues can be resolved during markup. Coin Center's Executive Director Peter Van Valkenburgh praised the market structure draft as favorable to software developers and decentralized tools.
The DeFi Education Fund has launched a strong critique, identifying eight proposed amendments it claims are "anti-DeFi." The group warns these amendments would "seriously harm DeFi technology" and make legislation worse for developers. It specifically opposes measures from Senators Jack Reed, Andy Kim, Catherine Cortez Masto, and Elizabeth Warren.
Key contentious amendments include Amendment 42 (Reed/Kim), which would grant the Treasury authority to sanction smart contracts and platforms facilitating illicit activity, and Amendment 75 (Cortez Masto), proposing to prohibit transactions with unlawful DeFi protocols. Senator Warren has submitted over 20 amendments, including Amendment 104, which strikes out a "gratuitous distribution carveout for crypto offerings."
The Senate Banking Committee, led by Chairman Tim Scott, released a "Myth vs Fact" document defending the bill. It countered claims that the bill enables illicit finance through DeFi, stating it "targets illicit activity while protecting lawful software development and innovation." The committee framed the bill as an investor protection measure designed to prevent another FTX-style collapse and bring digital assets under a clear regulatory framework.
The legislative push faces urgency due to the looming November 2026 midterm elections, with advocates fearing progress could stall under a less favorable political climate. The House passed its version of the CLARITY Act in July 2025 with strong bipartisan support (294-134). Coinbase has threatened to withdraw support if the Senate introduces restrictions on stablecoin rewards, while critics argue the framework disproportionately benefits established players like Coinbase and Circle.
