Ripple's Schwartz Blames Banking Lobby for CLARITY Act Setback

Ripple CTO Emeritus David Schwartz has linked the Senate's setback for the CLARITY Act to pressure from traditional banks. The bill, which aimed to provide clarity on stablecoins and their regulation, fell short of the required 60 votes in a 49-50 cloture vote.

Schwartz argued that lawmakers used concerns about local lending to defend bank profits rather than consumers. He disputed Senator Josh Hawley's reasoning that yield-bearing stablecoins could pull deposits from Missouri banks and reduce credit for farmers and small businesses.

The SEC moved the effective date for Teucrium's 2x Short Daily XRP ETF to October 11, 2026, citing no policy reason. This regulatory uncertainty has contributed to selling pressure across the broader crypto market, with XRP trading near $1.29 after the Senate vote.