The regulatory battle shaking the cryptocurrency industry — intensifying disagreements over the Market Structure Bill

The policy shift by Coinbase, a leading company in the cryptocurrency industry, is causing ripples within the sector. According to a report by PANews in mid-January, the company’s CEO, Brian Armstrong, indicated his intention to withdraw support for the Crypto Asset Market Structure Law (CLARITY), stating, “It’s better to have no regulation than bad regulation that is unlimited.” However, this decision has met with opposition from major players in the cryptocurrency industry.

Industry Leaders United in Rejection—Calling for Policy Continuity

Arjun Sethi, Head of Kraken, argued that the longstanding bipartisan cooperative relationship should not be abandoned. He pointed out that multiple issues should be resolved through negotiations and that changing positions at this stage is premature.

In response, similar views have been expressed by Chris Dixon, Managing Partner at venture capital firm a16z; Brad Garlinghouse, CEO of the international remittance giant Ripple; and David Saks, Special Advisor on AI and crypto policy at the White House. All are strongly urging stakeholders to come together within the month to bridge the gap. Seth Hartline, Global Policy Lead at the cryptocurrency wallet company Ledger, also warned that if the current trend continues, it will be difficult to envision a desirable policy environment for the cryptocurrency industry.

Industry Fears the “Regulatory Vacuum”—The History of Confusion Caused by Changes in Administration

Within the cryptocurrency community, a widespread sense of crisis exists. The concern is that if legislation stalls at this stage, there may never be another chance for it to pass in the future, or the industry may be forced to restart under highly unfavorable conditions.

The reason the industry places such importance on the passage of the CLARITY bill is rooted in historical experience: each change of government has significantly altered the availability of software and content distribution rights. The cryptocurrency industry seeks to distance itself from such political fluctuations and is calling for a stable regulatory framework.