Banks Accused of Obstructing Clarity in Crypto Regulation
Senator Cynthia Lummis has accused banks of trying to obstruct progress on the CLARITY Act, one of the most consequential efforts at crypto regulation in years. The bill, formally known as the Digital Asset Market Clarity Act, aims to provide a clear legal rulebook for digital assets by defining what constitutes securities and commodities.
The senator claims that banks are using their leverage to demand changes to the bill's text as a precondition for support, rather than simply raising technical concerns. This could be a major hurdle for the bill's progress, as it needs broad backing to clear procedural hurdles in the Senate.
One sticking point is stablecoin interest: banks worry that if crypto platforms are allowed to pay rewards on stablecoins, deposits could flow out of traditional banking accounts and into digital wallets. Crypto firms counter that banks want the perks of competing in digital finance without accepting the same regulatory burden as traditional lenders.