Debate is healthy, but the facts on CLARITY aren’t debatable.
1 - On rewards: Section 404 addresses banks’ purported concerns by barring any digital asset service provider or their affiliate from paying rewards in a manner that is economically or functionally equivalent to the payment of yield on a bank deposit and more (e.g., captures direct and indirect arrangements, includes strict anti-evasion language and civil penalties, etc.). Crypto gave many real concessions here.
2 - On AML/BSA: CLARITY bolsters law enforcement’s authority / capacity to target bad actors and CIF with clear obligations for digital asset companies, coordinated info-sharing mechanisms, protections that close regulatory gaps, increased funding for FinCEN, and much more (see, e.g., sections 201-206, 301-313, 507, 508, 801, 903, etc.).
3 - On benefits to banks: CLARITY ensures banks may engage in a broad range of activities, including providing digital asset custodial services, operating a node, making loans collateralized by digital assets, providing self-custodial wallet software, and more (see § 401).
4 - On benefits to Americans: Crypto represents ~$3 trillion global market cap, but currently 88% of global trading volume occurs on non-U.S. exchanges and only 19% of crypto developers are located in the U.S. CLARITY will bring all this onshore, under U.S. regulatory oversight.
CLARITY has benefits that extend far beyond any one company or constituency. This is a bill for ALL Americans, including banks. CLARITY awaits. The time is now.
🚨NEW: JPMorgan CEO Jamie Dimon took aim at the Senate's crypto market structure bill today, arguing it "doesn't do anything for AML/BSA" and provides "almost no legal protections."
When asked for comment, a spokesperson for
@SenLummis told me:
"The banks can’t deal with a bipartisan compromise on stablecoin yield and are making completely false claims about BSA/AML as a last ditch attempt to poke holes in a solid piece of legislation that protects consumers. Fear of competition always brings out an interesting side of people and that’s all this is.”