Clarity Bill Faces Opposition Ahead of US Senate Vote

The revised Digital Asset Market Structure Act, known as the Clarity Bill, is facing opposition from banking groups, 18 state attorneys general, and Senator Elizabeth Warren as it approaches a procedural vote in the US Senate. The Republican-led Senate plans to hold a vote on whether to begin debate on the bill, with The Block reporting that Republicans have released a revised version incorporating some Democratic requests.

American Bankers Association (ABA) and other banking groups argue that the bill's stablecoin provisions could allow for payments similar to deposit interest rates, demanding revisions. Meanwhile, 18 state attorneys general claim the proposal weakens their authority to regulate virtual asset fraud and protect investors from losses. Senator Elizabeth Warren criticized the bill's ethics provisions and investor protection standards.