- The CLARITY Act has split crypto leaders between pragmatists and critics.
- Coinbase argues the current draft could harm innovation and privacy.
- Bitcoin price action remains bullish despite regulatory uncertainty.
A growing divide is emerging inside the US crypto industry just as Bitcoin shows renewed technical strength. While some executives argue that imperfect regulation is better than continued uncertainty, others warn that the latest market structure proposal could do more harm than good. At the same time, Bitcoin appears largely unfazed by the policy debate, with price indicators pointing to further upside.
The disagreement centers on the Digital Asset Market Clarity Act, commonly referred to as the CLARITY Act. Although Senate markup on the bill was delayed this week, reactions from industry leaders reveal sharply different views on how the legislation could shape crypto’s future in the United States.
Supporters Say Clear Rules Are Long Overdue
Proponents of the bill argue that clarity matters more than perfection. Chris Dixon, managing partner at a16z Crypto, said builders need clear guidelines to operate confidently. In his view, the bill reflects years of bipartisan effort to protect decentralization, support developers, and keep the US competitive.
Coin Center executive director Peter Van Valkenburgh echoed that optimism, noting that the current draft provides a foundation that can still be improved. Supporters believe pushing the bill forward sends an important signal that Washington is serious about providing a workable framework for digital assets, even if revisions are required along the way.
Coinbase and Others Warn of Serious Risks
Not everyone agrees. Coinbase CEO Brian Armstrong withdrew support for the bill, arguing that it introduces too many harmful provisions. He cited concerns ranging from restrictions on tokenized equities and DeFi to privacy issues and an imbalance of power between regulators.
Armstrong said the bill, as written, would be worse than the existing regulatory environment. Bitwise head of research Ryan Rasmussen backed that view, warning that the draft could damage innovation across tokenization, stablecoins, and decentralized finance. Crypto lawyer Jake Chervinsky acknowledged the flaws but said the upcoming markup process offers a chance to improve the text before it becomes law.
Bitcoin Price Shrugs Off Policy Uncertainty
Despite the regulatory noise, Bitcoin continues to climb. BTC recently reached two-month highs near $98,000, supported by strong technical signals. Indicators such as the relative strength index and MACD suggest bullish momentum remains intact, with RSI reclaiming the key 50 level for the first time since early October.
Analysts note that Bitcoin may soon test major long-term levels, including the 50-week moving average. If reclaimed, it would mark an unusual development for a potential bear-market year. Traders are watching closely, as past cycles suggest this zone often determines whether rallies extend or stall.
Also Read: Arthur Hayes Predicts Bitcoin Boom in 2026 — Here’s the Liquidity Trigger
The clash over the CLARITY Act highlights a broader tension within crypto: the trade-off between regulatory certainty and regulatory risk. While lawmakers debate the bill’s future, Bitcoin appears to be pricing in stronger fundamentals, driven by ETF demand, liquidity, and technical momentum. For now, markets seem more focused on charts than Congress—but that balance could shift quickly.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
