According to Michaël van de Poppe, over-regulation of the crypto industry would have a negative impact on markets and undermine decentralized finance (DeFi).
According to market analyst Michaël van de Poppe, it’s positive for the crypto markets and the industry that the CLARITY bill on the structure of the crypto market isn’t passed within the US Congress.
Van De Poppe noted that crypto exchange Coinbase withdrew its support for the bill on Wednesday, and that Coinbase CEO Brian Armstrong listed several concerns concerning the latest version of the bill in an X post.
Van De Poppe explains why the CLARITY Act has stalled and why it is nice for the crypto industry. Source: Michael Van De Poppe
Issues included 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. Van De Poppe said:
“I believe that if the bill were adopted in its current form, it could have had a really negative impact on the markets usually. Therefore, all parties at the moment are able to proceed the discussion. It jogs my memory loads of the Regulations on Markets in Crypto Assets (MiCA) in Europe.” 
Source: Brian Armstrong
According to Van De Poppe, MiCA, a comprehensive crypto regulatory framework for the European Union (EU), also went through several rounds of negotiations and revisions before the ultimate version got here into force.
Adopting a framework for the structure of the crypto market within the US is a key policy goal of the crypto industry and its allies in Congress, who’re pushing for clear rules for on-chain financing.
Coinbase CEO denies rumors of tensions with the White House and says CLARITY negotiations are still ongoing
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 Terrett reported on Saturday.
Source: Eleanor Terrett
Armstrong disputed the report and said negotiations were still underway to draft a version of the bill that will satisfy the crypto industry and community banks.
The White House was “extremely constructive” throughout the process, Armstrong said. His post sparked a flood of reactions criticizing the banking sector and the ban on high-yield stablecoins.
“Don't allow them to destroy stablecoin yields. That would set stables back for a generation. Hang in there,” said enterprise capitalist Nic Carter.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's editorial guidelines and goals to supply accurate and up-to-date information. Readers are advised to independently confirm the data. Read our editorial policies https://cointelegraph.com/editorial-policy
