Senate and Crypto Heavyweights Signal CLARITY Act Is Still Alive Despite Coinbase Revolt

Coinbase’s abrupt decision to withdraw support for the CLARITY Act sent a shock through Washington and crypto markets as well. It triggered the cancellation of a scheduled Senate Banking Committee markup and reignited fears that US crypto market structure reform could once again stall.

However, if the immediate reaction appeared to be political chaos, the response that followed tells a more nuanced story.

CLARITY Act Enters Critical Negotiation Phase After Coinbase Pull-Out

Rather than collapsing, the bill appears to have entered a tense but deliberate pause, one that lawmakers, industry leaders, and even the White House insist is part of the final stretch, not the end of the road.

Senate Banking Committee Chair Tim Scott moved quickly to reframe the delay as constructive.

“I’ve spoken with leaders across the crypto industry, the financial sector, and my Democratic and Republican colleagues, and everyone remains at the table working in good faith,” Scott said.

According to Tim Scott, the goal remains delivering “clear rules of the road that protect consumers, strengthen national security, and ensure the future of finance is built in the US.”

Senator Cynthia Lummis, one of the bill’s key architects, reiterated the message, acknowledging frustration but rejecting the idea that Coinbase’s move had derailed the effort.

Senator Cynthia Lummis on the CLARITY Act. Source: Lummis on X

Inside the industry, Coinbase’s stance has exposed a clear split, but not a loss of momentum. Ripple CEO Brad Garlinghouse highlighted the Senate’s effort as a significant step forward in providing workable frameworks for the crypto industry.

Acknowledging that “clarity beats chaos,” the Ripple executive remains optimistic that issues can be resolved during the markup process.

While long-overdue, this move by @SenatorTimScott and @BankingGOP on market structure is a massive step forward in providing workable frameworks for crypto, while continuing to protect consumers. Ripple (and I) know firsthand that clarity beats chaos, and this bill’s success is… https://t.co/EWcml1NpBE

— Brad Garlinghouse (@bgarlinghouse) January 14, 2026

Meanwhile, a16z’s Chris Dixon struck a similar tone, arguing that while the bill is imperfect, now is the time to move the CLARITY Act forward. This comes as the US seeks to strengthen its position in the global cryptocurrency market.

Kraken executive Arjun Sethi went further, framing the moment as a test of political resolve rather than legislative failure.

“It is easy to declare failure. It is easy to walk away when a process gets difficult,” Sethi said, warning that abandoning the bill would “lock in uncertainty and leave American companies operating under ambiguity. At the same time, the rest of the world moves forward.”

Galaxy Digital CEO Mike Novogratz reinforced that view. Meanwhile, the White House also weighed in, highlighting the stakes.

White House Urgency Meets Senate Frustration as CLARITY Act Debate Shifts

Crypto and AI czar David Sacks said passage of market structure legislation is “as close as it’s ever been.” With this, he urges the industry to use the pause to resolve differences, establish clear rules of the road, and secure the industry’s future.

Passage of market structure legislation remains as close as it’s ever been. The crypto industry should use this pause to resolve any remaining differences. Now is the time to set the rules of the road and secure the future of this industry. https://t.co/8tsmW9T1N4

— David Sacks (@davidsacks47) January 15, 2026

Behind the scenes, however, frustration is a real concern. A Senate source cited by Decrypt’s Sander Lutz reportedly said Banking Committee members were “pretty pissed” about Coinbase’s last-minute announcement.

“The prevailing sense is it didn’t have to go down this way,” Lutz stated, citing the unnamed source.

That frustration likely contributed to leadership’s decision to pull the markup, as confirmed by journalist Eleanor Terrett. BeInCrypto will report once a new date is set.