The Clarity Act, which proposes to divide oversight of digital assets between the SEC and the CFTC, failed to secure a Senate vote before the August recess, despite passing the House and advancing through the Senate Banking Committee. This situation has generated frustration among community bankers, who are concerned that stablecoin-yield provisions could draw deposits away from local banks. Market participants interpret the delay as a negative indicator for the bill’s prospects of becoming law by 2026. The future of the legislation now depends on upcoming Senate actions, particularly decisions from Senate Majority Leader Chuck Schumer and Senate Banking Committee Chairman Tim Scott.
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