Regional Banks Thwart CLARITY Act Progress in US Senate
The CLARITY Act, a digital-asset market structure bill, has hit a roadblock in the US Senate. Regional banks have successfully lobbied Republican senators to slow down the bill's progress, citing concerns that a regulatory framework for stablecoins and digital assets could lead to deposit outflows and weaker profitability.
The opposition from regional banks was instrumental in keeping the CLARITY Act from reaching the Senate floor before the August recess. According to Punchbowl News, several factors contributed to this delay, but coordinated opposition from regional banks was a major factor.
Regional banks argued that introducing stablecoins and a digital-asset regulatory framework could have negative consequences for their business. Brad Bolton, CEO of Community Spirit Bank in Alabama, said that the mood shifted when lesser-known regional bankers like him directly explained to lawmakers the real impact the bill could have on local financial institutions.