Banks' Quiet Win: Amendment to Failed CLARITY Act Reveals GOP Divide

A quiet victory for banks has been revealed before the CLARITY Act failed. An amendment to the bill, submitted by Senator Jerry Moran (R-Kan.), aimed at tightening stablecoin yield restrictions was requested by banking industry advocates and strongly opposed by the crypto industry.

The amendment picked up more than a dozen co-sponsors, including seven Republicans, such as Senators Susan Collins (Maine) and Cindy Hyde-Smith. This level of GOP support for a bank-favored provision further complicates the path to the 60 votes needed for the bill to advance, revealing internal Republican disagreement that went largely unnoticed amid last week's failed vote.

The CLARITY Act aimed to provide clarity on digital asset transactions and stablecoins. However, this amendment suggests that even within the Republican party, there is a divide in how they approach crypto regulations.