According to Michael Van de Poppe, overregulation of the crypto industry will negatively impact the market and negatively impact decentralized finance (DeFi).
According to market analyst Michael van de Poppe, the failure of the CLARITY Cryptocurrency Market Structure Act to pass in the US Congress is a positive for the crypto market and industry.
Van de Poppe cited crypto exchange Coinbase withdrawing its support for the bill on Wednesday, and Coinbase CEO Brian Armstrong’s X post citing several concerns about the latest version of the bill.
Issues include a “de facto ban” on tokenized stocks, government access to user records on decentralized finance (DeFi) platforms, and a ban on high-yield stablecoins, Armstrong said. Mr Van de Poppe said:
“If this bill had been approved in its current form, I think it would have had a very negative impact on the market in general. So all parties are now aligned to continue the discussion. This is very reminiscent of the European Markets in Cryptoassets (MiCA) regulation.”
According to Van de Poppe, the European Union’s comprehensive cryptocurrency regulatory framework, MiCA, also went through several rounds of negotiations and amendments before its final version became law.
Passing a framework for the crypto market structure in the US is a key policy goal of the crypto industry and its allies in Congress, who are calling for clear rules on the path to on-chain finance.
Related: Crypto industry splits over CLARITY Act after Coinbase breaks ranks
Coinbase CEO denies rumors of tension with White House, says CLARITY negotiations are underway
The White House threatened to withdraw support for the Clarity Act in response to Coinbase withdrawing its support for the bill, independent crypto reporter Eleanor Terret reported on Saturday.
Armstrong denied the report and said that negotiations are underway to draft legislation that will satisfy the crypto industry and local banks.
Armstrong said the White House had been “very constructive” during the process. His post was flooded with responses criticizing the banking sector and banning high-yielding stablecoins.
“Don’t let them kill the yields on stablecoins. That would set stablecoins back a generation. Please hold the line,” said venture capitalist Nick Carter.
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