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Banking lobby pushes for edits to stalled US Clarity Act
The American Bankers Association CEO said lawmakers are trying to pass the bill before the August recess, but stablecoins and local lending need changes.
Banking lobby pressure is among the reasons the US crypto Clarity Act remains stalled, with the American Bankers Association CEO telling CNBC that “surgical edits” are still needed for the bill to move forward. Rob Nichols said the bill contains “a lot of good,” but stablecoins and local lending provisions are the sticking points.
Nichols added that lawmakers are hoping to pass the Clarity Act before Congress heads into August recess. He also said that while the proposal is about 600 pages, only two paragraphs are under consideration for minor revisions.
The deadlock has centered on concerns from banking leaders over stablecoins, including issues related to stablecoin yield. The bill passed the House last year, but banking chiefs raised objections after which Coinbase pulled its support in January, following disagreements over whether earning yield on stablecoins should be banned.
Coinbase’s Chief Policy Officer, Faryar Shirzad, later downplayed the banking lobby’s concerns, saying top lenders are already adopting crypto technology. The article also notes that major US banks, including JPMorgan and Bank of America, have expressed interest or begun launching stablecoin products.