The Senate Banking Committee has scheduled a CLARITY Act hearing on Thursday, May 14 at 10:30 AM EST. Senate Banking Chairman Tim Scott announced the date on Friday evening. According to a committee memo, the final word is expected to be released on Monday with senators expected to submit amendments before the close of business on Tuesday.
The vote comes almost four months after the first Senate Banking bill was lost in January due to last-minute opposition from industry leaders, including Coinbase CEO Brian Armstrong, who argued that the bill slowed down banks and could effectively end stablecoin reward programs.
The Last Stands of the Banking Lobby
Not everyone is satisfied. Banking trade groups sent a letter to the Senate Banking leadership on Friday protesting the recent collapse of the stablecoin offering opportunities for rewards that could repeat interest rates. The groups want to be reformed so that stablecoins don’t function like interest-bearing bank accounts.
Over the weekend, American Bankers Association President Rob Nichols sent an email to member bank CEOs urging immediate action. He encouraged them to call Senate offices, mobilize staff, and send letters online urging voting on Thursday.
A Senate aide who reviewed the letter described the effort Crypto in America as a “beautiful milquetoast,” I realize lawmakers on both sides have moved forward and resolved moral issues rather than repeating the profit-making debate.
The Question of Democracy
The biggest unknown coming into Thursday is whether every Democrat on the committee will vote yes.
Attorneys Adam Schiff and Ruben Gallego have been leading legal proceedings related to the controversy surrounding President Trump and his crypto family. Schiff is described as very tough on the subject. Gallego has been a key advocate in advancing the bill but his final vote has yet to be determined.
Senator Mark Warner, another key DeFi negotiator, will also be one to watch on Thursday.
Why Is It Important?
The bill can move forward from committee with a simple vote. But that way has its dangers. Galaxy Digital research director Alex Thorn told Crypto America that the Republican committee’s vote could make it difficult to get the 60 votes needed to pass the Senate.
“While it’s possible that the bill could do better if it moves through the Senate Banking Committee, the possibility of the Senate is likely if no Democrats vote in favor of the committee on Thursday,” Thorn said.
Others remain critical, pointing to the bipartisan push that has kept the bill alive in the face of so many setbacks.
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