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CLARITY Act faces Senate hurdles as banking lobby opposes stablecoin rewards
The CLARITY Act, a major U.S. legislative effort to establish a unified regulatory framework for digital assets, faces significant hurdles in the Senate. Galaxy Research has drastically lowered the probability of the bill passing this year from 75% to 10%, citing political obstacles and intense lobbying. The proposed legislation seeks to divide oversight of digital commodities and transactions between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
A primary point of contention is the treatment of stablecoin yields. The banking industry, including major institutions like JPMorgan Chase, has lobbied against the bill, arguing that allowing crypto platforms to offer rewards on stablecoin holdings could trigger a mass exodus of deposits from traditional banks. Conversely, crypto advocates and former House Financial Services Committee Chairman Patrick McHenry argue that there is no evidence of deposit flight and that the banking lobby is attempting to preserve political power.
The Senate is scheduled to return on September 14, with a procedural cloture vote on the bill set for September 15. To pass, the bill requires at least 60 votes, meaning Republicans would need to secure at least seven Democratic votes. While some market analysts suggest the bill's passage could drive Bitcoin prices higher by reducing regulatory uncertainty, the current legislative outlook remains highly uncertain.
Entities
CLARITY Act · Citigroup · Commodity Futures Trading Commission · Galaxy Digital · Galaxy Research · John Thune · Securities and Exchange Commission · U.S. Commodity Futures Trading Commission · U.S. Securities and Exchange Commission · U.S. Senate · United States Senate
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Citigroup has publicly urged Congress to pass the CLARITY Act to support safe digital asset adoption. www.merca2.es
- [● 5 SOURCES] A Senate procedural vote on the bill is scheduled for September 15. www.blockmedia.co.kr · news.bitcoin.com · www.finanzen.ch
- [○ 1 SOURCE] Former House Financial Services Committee Chairman Patrick McHenry expects the bill to pass later this year. timestabloid.com
- [● 3 SOURCES] Senate Majority Leader John Thune filed a cloture motion to proceed to the bill. www.blockmedia.co.kr · news.bitcoin.com
- [● 4 SOURCES] The CLARITY Act aims to establish a unified regulatory framework for digital assets in the United States. www.blockmedia.co.kr · news.bitcoin.com · techbullion.com
- [● 4 SOURCES] Passing the bill requires at least 60 votes, meaning Republicans would need at least seven Democratic votes. www.blockmedia.co.kr · news.bitcoin.com · techbullion.com
- [● 3 SOURCES] The bill would divide U.S. crypto oversight between the SEC and the CFTC. www.blockmedia.co.kr · news.bitcoin.com
- [● 3 SOURCES] Banks oppose the bill due to concerns that stablecoin yields will cause deposits to flee traditional banking institutions. timestabloid.com · assodigitale.it