CLARITY Act: progress, pushback, and the shape of the compromise

The U.S. crypto market structure bill, also called CLARITY Act, had taken a meaningful step forward this week as the Senate Banking Committee prepared its first-ever markup. As Jake Chervinsky (Chief Legal Officer at crypto native VC Variant) noted, this is a historic moment: for the first time, lawmakers are attempting to codify clear rules for crypto markets rather than regulate them through enforcement and litigation.

The CLARITY Act aims to define how tokens are issued, how markets are supervised, and where responsibility sits between the SEC and the CFTC. For entrepreneurs, it promises regulatory clarity. For investors, it aims to improve market integrity. For the industry, it offers protection against regulatory whiplash. But the details matter, and this is where tensions are surfacing.

Banks are lobbying aggressively, particularly around stablecoins. After the GENIUS Act already banned yield-bearing stablecoins, the current CLARITY draft goes further by restricting third-party rewards as well.

Tokenized securities are another flashpoint. While SEC Chair Paul Atkins has promoted an innovation exemption to bring capital markets onchain, provisions in the draft would sharply limit the SEC’s flexibility to adapt securities rules for tokenized assets, raising concerns that the bill could slow, rather than accelerate, onchain markets. Token issuance could become more expensive and complex, DeFi developers would still lack clear protections, and institutions would remain constrained in how they can legally access DeFi, despite clear demand to do so.

These tradeoffs have now become visible. Coinbase publicly withdrew its support, arguing the current draft would be worse than the status quo, citing stablecoin rewards, DeFi access, and tokenized equities.

The Senate has since delayed the markup, signaling that negotiations over how blockchain technology is ultimately integrated into the U.S. financial system are still ongoing.

Also this week

• Coinbase withdraws support for crypto bill on eve of key Senate vote
• Sweeping crypto legislation hits major snag as Senate Banking Committee postpones markup
• Andreessen Horowitz raises $15B
• EU crypto exchange Bitpanda eyes $5B IPO in 2026
• Ripple wins early money license nod in Luxembourg for Europe expansion
• Bank of America CEO warns up to $6 trillion in deposits could shift to stablecoins

Relevant financial updates

• Fogo, a layer 1 blockchain utilizing the Solana Virtual Machine (SVM) and operating the Firedancer client to provide real-time, scalable experiences, had its TGE and is currently trading at a $411mln FDV
• Coinme*, a licensed cryptocurrency exchange that allows users to buy and sell digital assets using cash or a debit card, has been acquired by Polygon* for an undisclosed amount to be integrated with its stablecoin payments platform
• Alpaca, a financial technology company offering an API-first brokerage platform that enables developers and businesses to integrate stock, options, ETF, and cryptocurrency trading into their applications, has raised $150mln in a Series D funding round with investments from Endeavor Catalyst and 17 others, valuing the company at $1.15bln
• Project Eleven*, a research and development firm focused on quantum-safe cryptographic solutions, has raised $20mln in a Series A funding round with investments from Coinbase Ventures, Castle Island Ventures, Lattice Capital, Variant and 7 others
• SynapLogic*, a blockchain-based gaming ecosystem that integrates artificial intelligence into blockchain game development and experiences, has raised $15mln in a Strategic funding round with investments from Polychain Capital
• Neuramint, a platform for developers to create and manage autonomous AI workflows that interact with blockchain applications, has raised $5mln in a Seed funding round with investments from Borderless Capital, Lattice Capital, Selini Capital, and 3 others
• XMAQUINA, a DAO-governed treasury that deploys capital into private humanoid robotics companies and physical AI infrastructure, has raised $10mln in a Public Token Sale with investments from Borderless Capital and 23 others
• Noise, a protocol that features tradable markets for crypto project mindshare, allowing users to speculate on attention trends, has raised $7.10mln in a Seed funding round with investments from GSR Investments, Paradigm, Figment Capital, Anagram Crypto and 9 others
• Meld, a fintech infrastructure provider that offers a unified API and integration platform for digital asset access, on‑ and off‑ramping, and financial services, has raised $7mln in a Strategic funding round with investments from Lightspeed Venture Partners, and 3 other

*Underlying TBV portfolio position | Prices as per 16/01

Interesting things to read

• CoinFund’s president Christopher Perkins shares his thoughts on the crypto market structure bill
• Castle Island Ventures’ Nic Carter speaks about the existential threat quantum computing poses to Bitcoin on the Delphi Digital podcast

Upcoming events

• IPEM Wealth Awards in CannesFeb 3-5
• EthDenver 2026Feb 17-21
• I-Connections MiamiFeb 24-26