Clarity Act rejection protects bank deposits while driving crypto business overseas
Summary
The Senate failed to advance the Clarity Act in a 49-50 vote, leaving U.S. crypto market rules to continue developing through SEC and CFTC actions rather than a comprehensive law. The debate also highlighted banks’ concerns that stablecoin rewards could compete with deposits. After the vote, the SEC issued a temporary conditional exemption for eligible venues trading tokenized U.S. stocks on public blockchains, while the CFTC sent an undisclosed crypto proposal to the White House for review. Industry observers said regulatory uncertainty could push firms and capital toward clearer jurisdictions such as the UAE, where more than 110 virtual-asset businesses are regulated.
