Clarity Act Faces Three-Front Pushback Ahead of Senate Vote
The revised Digital Asset Market Clarity Act has faced opposition from multiple fronts ahead of its Senate vote. Eight banking trade groups, including the American Bankers Association and the Independent Community Bankers of America, have written to Majority Leader John Thune and Democratic Leader Chuck Schumer expressing concerns over the stablecoin yield ban, which they argue leaves room for interest-like payments on balances.
New York Attorney General Letitia James led a coalition of 17 other attorneys general in opposing the bill outright. They warn that federal preemption would strip state registration regimes and hand the Securities and Exchange Commission (SEC) unilateral discretion over its scope. Citing FBI data showing $11.4 billion in crypto fraud losses during 2025, up 22% from the prior year, James urged Congress not to pass the Clarity Act.
Democratic Senator Elizabeth Warren also rejected the ethics provision added to the text by Republicans. She argued that it hands enforcement power to President Trump's political appointees and carries loopholes that leave his crypto businesses untouched.