The long discussion between banks and the crypto sector about the CLARITY Act has still not come to an end. On Tuesday, a new chapter was added with a meeting between the two sides. Although the talks were labeled as “productive”, they still do not appear to have reached a resolution.
Disagreement between banks and crypto sector causes delays
Last July, the U.S. House of Representatives passed the CLARITY Act. Then it was the turn of the so-called “Banking Committee” of the Senate. A first hearing by the Senate itself seemed to take place in mid-January. However, the crypto exchange Coinbase withdrew its support the evening before, forcing the parties involved to start discussions again.
The withdrawn support arose from the text of the law, which would be particularly detrimental to the crypto sector. One of the main points was the fact that stablecoin issuers were not allowed to issue yields (similar to interest rates).
According to banks, allowing this option would result in as much as $6 trillion of capital flowing out of the sector.
In an effort to bring the two sides together, the White House organized a meeting on February 2. Here, the stablecoin discussion was mainly discussed and crypto companies proposed compromises. Ultimately, no solution was found, which necessitated another meeting. This took place last Tuesday.
New meeting did not end with resolution
The meeting was reorganized by the White House, but it turned out that there was still no solution. Ripple’s Legal Chief, Stuart Alderoty, said via his X account that the session was productive and that a compromise was in the air. In any case, both sides would like to maintain the momentum of the legislative process.
Dan Spuller of the Blockchain Association labeled the latest meeting as “smaller and more focused.” The stablecoin discussion was still central, but the banks did not come to negotiate the text of the law. On the other hand, she shared a list of restrictions that they want to implement. However, there remains disagreement about this.
The banks were represented by three associations, namely the American Bankers Association, the Bank Policy Institute and the Independent Community Bankers of America.
After the meeting, they issued a joint statement, which stated that the discussion should continue. A framework must embrace financial innovation, but not at the expense of safety and soundness. In addition, bank deposits, which, for example, stimulate loans and economic activity, should not be jeopardized.
Source: https://newsbit.nl/banken-en-cryptosector-botsen-opnieuw-over-clarity-act-oplossing-blijft-uit/
