Stablecoin Rewards Threaten Community Banks

The CLARITY Act (Digital Asset Market Clarity Act) failed to pass cloture and won’t be taken up on the Senate floor. This is very, very good news. Despite attempts until the last minute by New York Senator Kirsten Gillibrand—a Democrat who is closely associated with the crypto lobby—not a single one of her colleagues came over to her side. So even she voted “no” to advance the bill. This likely means CLARITY is dead for the foreseeable future. But it doesn’t mean it’s gone. This is a victory for the banking industry and a huge blow to the Trump family who were banking (pun intended) on this bill setting up World Liberty Financial to be one of the wealthiest stablecoin firms in the world.

Resources

Politico: Gillibrand privately urges Dems to advance crypto bill

CNBC: Trump agrees to ethics requirements in crypto Clarity Act as GOP seeks Democratic votes

ABA Banking Journal: ABA, banking groups warn revised Clarity Act fails to protect community banks

Unchained: Banking Groups Push Senate to Tighten CLARITY Act Stablecoin Rules, Warning of Deposit Flight

decrypt: Tether Reports $1.5B Q2 Profit as USDT Supply Grows, Gold Holdings Rise

UNFTR Resources

Video: The CLARITY Act is DEAD: Why Trump’s Crypto Scheme Failed.

Essay: The CLARITY Act is Dead (For Now).

Episode: Trump is Looting the Treasury.

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