a16z Policy Chief: Some Banks Do Not Want the CLARITY Act to Pass, No Stablecoin Rewards-Induced Deposit Outflows Observed

BlockBeats news, September 12: Miles Jennings, policy head and general counsel at a16z crypto, said in an interview that some banks may not want the Crypto Market Structure Act (the CLARITY Act) to pass and become law. Regarding the banking sector's claim that "stablecoin rewards will lead to deposit outflows," he has yet to see evidence. Jennings believes that administrative actions by the U.S. Securities and Exchange Commission (SEC) alone cannot provide founders with long-term certainty that spans administrations, and the Gensler-era approach of "enforcement in place of legislation" could continue to push crypto entrepreneurial activity out of the United States.

Yesterday, Republican senators in the U.S. Senate released a new version of the CLARITY Act text, with only days left before the first procedural vote on September 15. The revised bill says it has incorporated 114 amendment suggestions proposed by Democrats and emphasizes that it aims to establish the first comprehensive crypto market regulatory framework in the United States. The new bill adds regulatory provisions targeting "non-decentralized financial transaction protocols." Relevant protocols that meet the definition would need to register with the U.S. Commodity Futures Trading Commission (CFTC), with the CFTC and the U.S. Department of the Treasury developing supporting rules; at the same time, the bill further clarifies that DeFi-related provisions mainly apply to spot and cash digital commodity transactions.

However, whether the bill can advance still faces significant uncertainty. The new text has no major changes on ethics provisions, with the Department of Justice still responsible for enforcing the relevant rules, while Democrats had previously demanded that state attorneys general be given more enforcement authority. In addition, issues such as stablecoin yield, illicit finance, and Trump's crypto asset conflicts of interest remain major obstacles in bipartisan negotiations. The Senate will hold a procedural vote on September 15 to advance the CLARITY Act. Because advancing the procedure requires 60 votes, while Republicans currently hold only 53 seats, Democratic support is key to the bill's continued advancement.