Coinbase Pulls Back from Major U.S. Crypto Market Reform, Signalling Industry Uncertainty

U.S. cryptocurrency exchange Coinbase has abruptly withdrawn its support from the CLARITY Act, a controversial legislative effort aimed at defining clear market rules for digital assets at a time when regulatory clarity remains elusive in Washington. The move comes as the crypto industry faces a critical phase in conversations over how tokens should be legally classified and overseen by financial regulators. Although the CLARITY Act had been seen as one path toward consistency in a fragmented regulatory environment, growing resistance from major firms reflects concerns that certain provisions could stifle innovation or confer uneven advantages. The decision resonates with broader turbulence in the digital-asset sector, where legal uncertainty has contributed to volatility and hesitation among institutional investors, prompting calls for more balanced frameworks that protect consumers without hindering technological growth.