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US Crypto Stakeholders Urge Senate to Expedite CLARITY Act for Financial Innovation

Over 120 organizations within the crypto industry are calling on the US Senate to fast-track the markup of the CLARITY Act.

This initiative aims to establish a federal market structure framework for digital assets to bolster US leadership in financial innovation.

Organizations like the Crypto Council for Innovation and the Blockchain Association emphasize that this is a “critical moment” for digital finance in America.

They argue that a robust market structure is essential for clarifying market participant roles, ensuring consumer protection, and maintaining the US's competitive edge.

Recent actions by the SEC and CFTC have been praised for bringing some clarity, but industry stakeholders assert that agency actions alone are inadequate.

Concerns have emerged about a potential delay in the markup process due to pressure from the banking sector over stablecoin yield restrictions in the Act.

The banking industry is reportedly unhappy with limits placed on yield offerings for stablecoin balances, which has contributed to stalling the bill for months.

Despite these hurdles, there remains optimism for a markup to occur in mid-May, as key stakeholders point to timelines mentioned previously.

Paradigm’s VP of Regulatory Affairs has indicated that significant pressure from the banking sector is unlikely to increase until after Memorial Day.

As the situation unfolds, the crypto community remains hopeful that the Senate will act swiftly to enact crucial legislation for the future of digital assets.