CLARITY Act Stalls in Senate, But Crypto Market Still Feeling Impact

The CLARITY Act has stalled in the Senate, but its impact on the crypto market is still being felt. According to a recent report from the Congressional Research Service, the Senate version of the bill would allow US banks and credit unions to engage in 11 digital asset activities, including underwriting and trading digital assets.

Under the Senate version, banking companies and credit unions could underwrite and trade more types of digital assets, without maintaining the distinction between insured banks and subsidiary companies under common ownership.

The House bill, on the other hand, is more limited, permitting banks to apply blockchain and other digital technologies to existing activities, while authorizing other crypto activities for nonbank subsidiaries of financial holding companies.

The Senate-passed bill would make no distinction between activities classified as the 'business of banking' and activities classified as 'financial in nature,' according to the CRS report.