Crypto's Washington loss opens a bigger fight
The Clarity Act's failed Senate vote exposed the real battle: whether stablecoins become deposit accounts or stay as payment tools.
In brief
The Clarity Act's failed Senate vote exposed the real battle: whether stablecoins become deposit accounts or stay as payment tools. Banks and crypto companies both want digital money and tokenization, but they're fighting over who controls customer balances and the economics that come with them. Originally reported by…
Clarity Act fails in Senate
The Digital Asset Market Clarity Act fell short on a procedural cloture vote on September 15, leaving crypto without comprehensive federal market structure rules.
Congress exits early, crypto waits
House Speaker Mike Johnson cancelled Thursday votes and lawmakers will recess until after November midterm elections, leaving crypto regulation in limbo.
Crypto turns to regulators instead
With Congress stalled, the SEC and CFTC are now crypto's best hope for clarity. Coinbase CEO Brian Armstrong said regulators have the tools to act under existing authority.
“Crypto can't be uninvented. With clarity emerging through the regulators, we'll continue updating the financial system.”
SEC chairman promises action
SEC Chairman Paul Atkins said the agency will act decisively within its statutory authority to deliver certainty for investors and entrepreneurs, with or without legislation.
“With or without legislation, we will act decisively within the SEC's statutory authority to deliver certainty for American investors.”
Real-world demand already exists
Businesses are already using stablecoin rails because they're faster and work outside banking hours. Clear rules would just accelerate adoption and bring in companies waiting on the sidelines.
“Global businesses and financial institutions are already settling on stablecoin rails because it's faster and works outside banking hours.”
Banks reveal the real fight
Banking groups say they support crypto regulation but zeroed in on one issue: stablecoin yield. They fear rewards could pull cheap funding out of traditional bank accounts.
“Adopt targeted changes to stablecoin yield policy. We stand ready to work with all stakeholders to achieve this important goal.”
The fight is about customer balances
Both banks and crypto companies want tokenization and digital money. The real battle is over who controls where customers park their money and captures the economics.
Agency rules are less durable
Regulatory action can be vulnerable to administration changes, litigation, and future regulators. Legislation would provide a more stable foundation for long-term decisions.
Most companies still waiting
A PYMNTS survey found that 13% of middle market firms use stablecoins and 5% use other cryptocurrencies. Most remain cautious about digital assets without clear rules.
What it means
Banks and crypto companies both want digital money and tokenization, but they're fighting over who controls customer balances and the economics that come with them.
