Lummis: Clarity Act Could Open Path for U.S. Banks to Hold Crypto, Boosting Bitcoin

U.S. Senator Cynthia Lummis said the Clarity Act could provide the institutional foundation for banks to hold virtual assets such as Bitcoin, according to a report by cryptocurrency media CoinGecko on May 15.

In an interview with Bloomberg Crypto, Lummis stated that if passed, the bill would allow banks to reduce restrictions on holding virtual assets and predicted that 'Bitcoin will rise significantly.'

The Clarity Act is a U.S. legislative proposal aimed at clarifying the market structure for virtual assets, explicitly permitting federally licensed banks to engage in digital asset custody, lending, and brokerage services. It also allows these institutions to hold digital assets on their own accounts within specified risk management and liquidity frameworks.

The U.S. Senate is set to conclude debate on the Clarity Act with a vote on May 15 (local time), though this is not a final passage vote. A minimum of 60 votes are required to advance the bill, meaning Republicans need support from at least seven Democrats given their current 53-seat majority.

However, Democrats have demanded additional amendments, arguing that ethics provisions limiting conflicts of interest for public officials and their families regarding virtual assets are insufficient. The banking industry has also raised concerns about stablecoin-related clauses, leaving the vote outcome uncertain.