Blockchain Association Urges Senate to Pass Clarity Act Without Last-Minute Changes
Senate Vote on Clarity Act Looms Amid Last-Minute Push for Changes
The U.S. Senate is set to vote on September 15 on whether to debate the Clarity Act, a bill aimed at providing regulatory clarity for digital assets like cryptocurrencies. The Blockchain Association, a crypto industry group, is urging lawmakers to pass the bill without reopening negotiations on key provisions, warning that last-minute changes could derail the legislation.
Summer Mersinger, CEO of the Blockchain Association and a former Commodity Futures Trading Commission (CFTC) commissioner, argues that proposed amendments from the American Bankers Association (ABA) would introduce legal ambiguity and restart a negotiation process with no time left before the vote. The Senate has fewer than three working weeks before the legislative window closes ahead of midterm elections.
Proposed Changes Could Restart Negotiations
The ABA has suggested two changes to the Clarity Act: replacing the bill’s current standard with the phrase “substantially similar to interest” and removing the word “solely.” Mersinger says these changes are not minor language fixes but major policy shifts.
The phrase “substantially similar to interest” is a legal standard that could be interpreted broadly, potentially affecting programs like cash-back rewards or loyalty tiers offered by banks. The word “solely” comes from the GENIUS Act, which bars issuers from paying yield “solely in connection with the holding, use, or retention” of a stablecoin—a type of cryptocurrency designed to maintain a stable value. Removing “solely” could expand the prohibition to include activities Congress intentionally excluded.
Disagreement Over Evidence of Bank Deposit Risks
The ABA argues that the Clarity Act could harm bank deposits, but Mersinger points to Federal Deposit Insurance Corporation (FDIC) data showing U.S. deposits have grown by over $800 billion in the three quarters since the GENIUS Act was enacted. She calls the ABA’s concerns speculative, noting that no real-world evidence supports the claim of deposit flight.
The ABA dismisses this data, saying full regulatory implementation is not yet complete. Mersinger counters that if evidence can always be dismissed as premature, no data could ever settle the debate.
What Is Confirmed
- The Senate will vote on September 15 on whether to debate the Clarity Act.
- The Blockchain Association opposes reopening negotiations on key provisions.
- The ABA has proposed changes to the bill’s language, which the Blockchain Association says would introduce legal ambiguity.
- FDIC data shows U.S. bank deposits have grown by over $800 billion since the GENIUS Act was enacted.
What Is Still Unclear
- Whether the Senate will approve the vote to debate the Clarity Act.
- Whether lawmakers will accept or reject the ABA’s proposed changes.
- How the bill would be affected if negotiations restart.
Why This Matters for Crypto Regulation
The Clarity Act aims to provide clear rules for digital assets, which could help businesses and investors operate with more certainty. If the bill fails or is delayed, the U.S. may continue to lack a unified regulatory framework for cryptocurrencies, leaving the industry in legal limbo.
