US Senate to vote on Clarity Act crypto bill
The US Senate will hold a preliminary vote on Tuesday on the Clarity Act, a bill intended to introduce a new regulatory system for cryptocurrencies and other digital assets. The initiative needs at least 60 votes to overcome a filibuster, and with all senators present, it must be supported by at least seven Democrats, CNBC Top News reports.
Disputes over stablecoins and ethics
The bill was approved by the Senate Banking Committee in May, but its further consideration stalled due to a lack of votes and disagreements among banks, the crypto industry and Democrats. Banking groups insist on tighter restrictions on interest-like payments, rewards or yields on stablecoins. In their view, such payments could trigger an outflow of deposits from community banks.
Democrats are demanding stricter ethical standards that, in their view, should prevent federal officials, including President Donald Trump and his family, from profiting from cryptocurrency projects. Democratic Senator Chris Van Hollen said the bill has significant problems that have not yet been addressed and called for preventing its passage.
Updated bill text
Republican leaders of the bill released an updated text late Sunday, calling it a final proposal to address Democrats' demands. According to Republicans, the document includes a significant part of the agreement on cryptocurrency ethics reached by Senators Thom Tillis and Ruben Gallego, which Trump agreed to. In particular, state attorneys general are proposed to be granted authority to enforce ethical requirements for federal officials.
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A compromise on stablecoin yields was also added to the text: the US Treasury secretary will be able to limit rewards if deposit outflows from community banks become substantial. At the same time, the American Bankers Association, along with nearly 80 banking groups, called on the Senate to further strengthen these provisions.
The vote will not be final
Republican Senator Bernie Moreno stressed that Tuesday's vote will not concern the final passage of the Clarity Act, but will determine whether the Senate can begin considering the document and move on to amendments. According to a CNBC source among Democrats, Senate Majority Leader John Thune is presenting the procedure as an opportunity to support further consideration, since the bill can still be changed before the final vote.
Coinbase CEO Brian Armstrong said cryptocurrency regulation will emerge regardless of the voting outcome, since the US Securities and Exchange Commission and the Commodity Futures Trading Commission are, according to him, ready to issue their own rules.
