Grayscale Backs Coinbase as Senate Delay Puts Clarity Act in Doubt

Key Insights

• Coinbase withdrew support for the Senate’s Clarity Act, saying recent changes hurt stablecoins, DeFi, and tokenized assets.
• Grayscale backed Coinbase, arguing the bill’s delay reflects bank lobby pressure rather than real crypto risk concerns.
• Even with the Clarity Act stalled, crypto ETFs can still move forward under existing SEC listing rules.

The crypto market has been waiting for clear rules in the United States for many years. The crypto community believed the Clarity Act could finally bring that clarity. But this week, the story changed.

Coinbase has officially stepped away from supporting the Senate version of the Clarity Act. Soon after that decision, the Senate Banking Committee delayed its planned discussion of the bill.

This sequence of events has raised new questions about what is really slowing crypto regulation in the US. The issue is no longer just about writing rules for crypto. It is now also about who those rules are designed to protect.

Coinbase Walked Away from the Clarity Act

The Clarity Act was meant to reduce confusion around crypto regulation. Its goal was simple. Decide which digital assets fall under the SEC, which fall under the CFTC, and set clear rules for exchanges, brokers, and custodians.

The House passed its version of the bill in 2025 with broad support. However, the Senate draft has changed in recent weeks. According to Coinbase, those changes crossed a line.

Coinbase said the Senate version now restricts stablecoin rewards, limits DeFi activity, and creates barriers for tokenized assets. Stablecoin rewards are important because they allow users to earn yield on digital dollars. DeFi matters because it lets people use crypto without banks. Tokenized assets matter because they connect blockchains with real-world finance.

From Coinbase’s point of view, those changes do not improve safety. Instead, they weaken crypto’s core features. That is why the company said it would rather have no bill than a bad one.

Soon after Coinbase pulled support, the Senate Banking Committee delayed its markup session. This delay pushed the Clarity Act into uncertainty. Yet, positive news bits are currently surfacing.

Grayscale Backs Coinbase and Points to Competition

Grayscale has publicly supported Coinbase’s decision. According to Grayscale, the real issue is not crypto risk. The real issue is competition.

Zach Pandl, Head of Research at Grayscale Investments, explained this clearly when asked who is responsible for the bill stalling. On whom he believes is responsible for the delay:

In simple terms, banks benefit from the current system. People keep money in bank accounts that earn very little interest. Stablecoins offer a new option. They move faster, work on blockchains, and can offer better returns.

From Grayscale’s view, limits on stablecoin rewards are not about protecting users. They are about protecting banks from competition.

ETFs Can Still Move Forward Without the Clarity Act

Grayscale also made another important point. Even if the Clarity Act does not pass soon, some parts of the crypto market can still grow.

In late 2025, the SEC introduced new generic listing standards. These changes allow more flexibility for exchange-traded products. According to Grayscale, this means altcoin ETFs and even staking features can still move ahead without new laws.

This matters because it shows progress is not fully blocked. Regulation may be slow, but some doors are already open.

Grayscale believes the most important part of the Clarity Act is still unresolved. That is the part that clearly defines which assets are securities and which are commodities. Until that is settled, uncertainty will remain.

What This Delay Means for the Crypto Market

Right now, the crypto market is stuck in a waiting phase. Companies want clear rules. Investors want predictability. Builders want to know what is allowed.

The Clarity Act delay keeps that uncertainty alive. It also highlights how much influence lobbying still has over crypto policy. However, Grayscale remains optimistic over the long term. Pandl made it clear that competition will not stop.

In the long term, despite the setback, crypto regulation is not failing because the technology is unsafe. It is struggling because it challenges existing systems. That tension is likely to shape US crypto policy well beyond 2026.