Associations React to Senate Banking Committee Vote to Advance the Clarity Act
Trade Associations reacted to the Senate Banking Committee action on the Digital Asset Market Clarity Act. (See previous coverage.)
Reflecting overall support for the legislation from the crypto industry, Summer Mersinger, CEO of the Blockchain Association, applauded the Committee action, stating: "[F]or too long, regulatory uncertainty has sent talent, investment, and innovation overseas—strengthening foreign competitors while leaving American builders without the certainty they need to compete. The Clarity Act is an opportunity to reverse that trend, reshore the next generation of financial technology jobs, and ensure digital asset markets are built here in the United States under American values: consumer protection, open markets, individual freedom, and the rule of law." She committed to continuing "engaging with lawmakers as the bill moves toward Senate floor consideration."
While supporting the concept of establishing a regulatory framework around digital assets, banking industry associations, including the American Bankers Association, the Bank Policy Institute, the Consumer Bankers Association, the Financial Services Forum, the Independent Community Bankers of America, and the National Bankers Association, urged senators to tighten the prohibitions on "interest-like rewards" for holders of payment stablecoins. (In its current form, the Act would bar covered digital asset service providers and their affiliates from paying U.S. customers passive, deposit-like interest or yield on payment stablecoin balances, while allowing bona fide activity-based or transaction-based rewards under joint rules to be issued by the SEC, CFTC, and Treasury.) The groups said the prohibition should be tightened to prevent bank deposits from migrating to stablecoin issuers, while preserving room for rewards tied to legitimate payment stablecoin transactions and activities. The Associations warned that without stronger guardrails, the products will draw deposits away from banks and threaten local lending.