Clarity Act Gains Bipartisan Momentum Despite Banking Lobby Concerns

Coinbase's Chief Policy Officer Faryar Shirzad believes that bipartisan support for the Clarity Act is sufficient to pass the bill within the year. The act aims to clarify the framework for cryptocurrency regulation in law, with a new draft circulating that would ban public officials and their families from issuing or promoting cryptocurrencies.

The bill has been under discussion in the U.S. Congress since last year and has recently begun circulating with a new provision that addresses concerns of Democratic lawmakers. Despite some opposition, Shirzad argues that the bill is 'a very bipartisan product' and expects it to pass soon.

The banking lobby has raised concerns about stablecoin interest-revenue structures and ethical issues, which could weaken banks' deposit base if cryptocurrency exchanges offer users high yields. However, Shirzad counters that major banks are already adopting cryptocurrency technology and will adopt it in the long term.