Senate-Reported CLARITY Act Would Permit 11 Crypto Activities for US Banks

The Congressional Research Service (CRS) has analyzed the Senate-reported CLARITY Act and identified 11 categories of crypto activities that would be permitted for US banks and credit unions. These activities include digital asset underwriting and dealing, which would exceed banks' current authority in comparable securities markets.

According to the CRS report, the Senate-reported bill would make these 11 activity categories available across banking organizations and credit unions without preserving the existing distinction between activities conducted inside insured banks and those assigned to nonbank subsidiaries.

The House-passed version of the CLARITY Act would give banks different permissions. It would allow them to use digital assets or blockchain technology to carry out activities already permitted by law, as well as authorize certain crypto activities for financial holding companies.

However, banking associations have opposed provisions covering stablecoin rewards, arguing that they could draw deposits away from lenders and reduce their ability to extend credit to households, farmers, and businesses.