Crypto market infrastructure legislation continues to move through the U.S. Senate as stakeholders struggle to reach agreement on the bill’s final language. Law of ClarityBanking, which passed the House last year, has struggled to gain traction in the Senate for fear of losing revenue to innovation. The key hurdle is whether stablecoin holders can earn interest or generate returns; This is something legacy banks do not want.
The entire saga is a disappointing reflection on the legislative process: although the path to approval is relatively clear, special interest groups (legacy banks) are hindering progress due to looming competition.
Yesterday, crypto journalist Eleanor was very scared shared A debate with the Ohio Senator Bernie Moreno He stated that the bill should be “done” by May. Moreno had previously worried that if the CLARITY Act was not passed by May, it could fall off the calendar as the midterms approach. Moreno also called the bank objections “fake” and told them to “innovate.”
Senator Moreno has a good understanding of the digital asset ecosystem, as he was involved in blockchain-based initiatives in his state before being elected.
While banks have cited unfounded concerns that stablecoins could undermine the industry’s ability to lend, the most disappointing aspect of the debate is the failure of elected officials to show some leadership and ignore the banking industry’s illegitimate protests. Banks can also compete and the entire financial services sector will benefit from a forward-looking policy that supports innovation, consumers and businesses.
Additionally, the inclusion of stablecoin yield in the digital dollar will make the dollar an undisputed reserve currency as the global population rushes to hold the digital asset while increasing their purchases of US Treasuries. All of this is good for the country.
