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a16z policy head argues bank pushback on CLARITY could backfire
Miles Jennings said the GENIUS Act is already law and has enabled more dollars to move onchain, regardless of whether the Digital Asset Market Clarity Act gets a floor vote.
a16z crypto policy head Miles Jennings said the banking industry’s efforts to block the Digital Asset Market Clarity Act, or CLARITY, are likely to harm banks’ position instead of preserving it. Writing on X, Jennings argued that leaving in place the stablecoin yield arrangement that banks have lobbied to tighten will continue under the GENIUS Act if CLARITY does not move forward.
Jennings pointed to the GENIUS Act as already enacted, saying it has “opened the floodgates for dollars to move onchain,” and he added that other real world assets could follow even without CLARITY passing. He also tied the argument to a16z’s support for a Senate floor vote, noting the firm signed an industry letter urging leaders to schedule consideration of the bill.
The dispute centers on how the bill would split regulatory oversight between the SEC and the CFTC, with the bill having advanced in the Senate Banking Committee in a 15-9 vote on May 14. Six banking trade groups, including the American Bankers Association and the Bank Policy Institute, have continued to urge senators to strengthen the measure by tightening the prohibition on “interest-like” rewards for holding stablecoins.
Those groups have also argued that the updated July 22 version could put at risk local lending that drives economic activity, saying the rules could “siphon away the bank deposits” that fund small business, mortgage, and farm loans. The bill remains waiting for floor time, while broader industry and lobbying groups have asked for a vote without delay, and Galaxy Digital research head Alex Thorn cut the odds of 2026 passage to 60% from 75%, citing a shrinking floor calendar and unresolved ethics and illicit finance provisions.