CLARITY Act Fails to Win Over Critics Ahead of Senate Vote

The CLARITY Act's revised version is facing growing opposition from various groups before its Senate vote on Tuesday. The bill aims to provide clarity on crypto market regulations, but critics argue that it falls short in addressing their concerns.

Senator Elizabeth Warren's staff has expressed reservations about the state enforcement power, claiming it is weaker than Republicans portray. Warren's team contends that the Justice Department retains key enforcement authority and can block state action where White House ethics officials have cleared the conduct.

The bill also faces opposition from banking groups, which argue that new protections against deposit flight would come too late. The American Bankers Association (ABA) and Independent Community Bankers of America have urged Congress to prohibit stablecoin rewards and incentives that function like deposit interest.