Senate Vote Looms for CLARITY Act, Potential Boost for USDC
The US Senate is set to vote on the Digital Asset Market Clarity Act, also known as the CLARITY Act, on September 15. This vote is a crucial step in determining the future of digital assets and stablecoins like USDC. The bill aims to provide clarity on the regulatory framework for digital assets, giving the Commodity Futures Trading Commission (CFTC) authority over spot markets for digital commodities.
The revised bill, released by Senator Cynthia Lummis, incorporates over 100 requested changes and clarifies credit unions' authority to conduct digital-asset activities. The bill's incremental value lies in defining the exchanges, brokers, protocols, and tokens around USDC, which could encourage more regulated venues to use it as settlement collateral.
Circle Internet Group, the company behind USDC, is less exposed to the outcome of this vote. According to its latest filing, 95.2% of its second-quarter revenue came from reserves, with $668 million in earnings and a total circulation value of $73.3 billion as of June.
A successful cloture vote would reduce one political obstacle and could widen USDC's addressable market, but it would not remove interest-rate exposure or distribution costs.