Overregulation of the crypto industry could harm markets and DeFi, warns analyst Michaël van de Poppe. Coinbase pulling support for the CLARITY bill is seen as a positive move, with CEO Brian Armstrong raising concerns over the bill’s impact, including restrictions on tokenized stocks and yield-bearing stablecoins. Van de Poppe likens the situation to MiCA regulations in Europe, emphasizing the need for continued discussions. Passing a clear crypto market structure framework in the US is a priority for the industry and Congressional allies. The White House threatened to drop support for the CLARITY Act after Coinbase withdrew its backing, but CEO Armstrong denies tension and states negotiations are ongoing to satisfy the industry and community banks. Armstrong praises the White House’s constructive approach and receives support from the crypto community, urging not to kill stablecoin yield.

Read more at Cointelegraph: The CLARITY Act Failing To Advance Is Good for the Crypto Industry: Analyst