Viewpoint: Amending key provisions of the “Clarity Act” will cause the legislation to fail; it should be passed as soon as possible
On August 22, Summer Mersinger, CEO of the Blockchain Association in the United States, posted that there is less than four weeks left before the U.S. Senate’s September 15 vote to advance debate on the “Clarity Act.” Reopening provisions that have already been negotiated for months will not improve the bill—instead, it will restart a negotiation process that cannot be completed, ultimately risking legislative failure. Mersinger said that the two proposed amendments from the American Bankers Association (ABA)—replacing the existing standard with “substantively similar interest,” and deleting the word “solely”—are not simple textual tweaks, but major policy changes. She noted that “substantively similar interest” is a more flexible legal standard that could allow regulators to broaden their interpretation; meanwhile, deleting “solely” would change the scope of how the “GENIUS Act” limits stablecoin yield, affecting the policy boundaries Congress previously set. Mersinger said the ABA’s concern that stablecoins may lead to outflows of bank deposits lacks a real basis. Data show that after the passage of the “GENIUS Act,” U.S. bank deposits have grown for three straight quarters, increasing by more than $800 billion in total. She emphasized that what truly needs to be protected is consumers through the establishment of a regulatory framework for digital assets. The “Clarity Act” would clearly define the regulatory boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), require platforms that serve U.S. users to register, and implement rules for segregating customer assets, information disclosure, and managing conflicts of interest. Mersinger concluded by urging the U.S. Senate not to reopen negotiations: “The bill is already done, and the work has already been completed. On September 15, the Senate has an opportunity to move it forward—just pass it.”
On August 22, Summer Mersinger, CEO of the Blockchain Association in the United States, posted that there is less than four weeks left before the U.S. Senate’s September 15 vote to advance debate on the “Clarity Act.” Reopening provisions that have already been negotiated for months will not improve the bill—instead, it will restart a negotiation process that cannot be completed, ultimately risking legislative failure. Mersinger said that the two proposed amendments from the American Bankers Association (ABA)—replacing the existing standard with “substantively similar interest,” and deleting the word “solely”—are not simple textual tweaks, but major policy changes. She noted that “substantively similar interest” is a more flexible legal standard that could allow regulators to broaden their interpretation; meanwhile, deleting “solely” would change the scope of how the “GENIUS Act” limits stablecoin yield, affecting the policy boundaries Congress previously set. Mersinger said the ABA’s concern that stablecoins may lead to outflows of bank deposits lacks a real basis. Data show that after the passage of the “GENIUS Act,” U.S. bank deposits have grown for three straight quarters, increasing by more than $800 billion in total. She emphasized that what truly needs to be protected is consumers through the establishment of a regulatory framework for digital assets. The “Clarity Act” would clearly define the regulatory boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), require platforms that serve U.S. users to register, and implement rules for segregating customer assets, information disclosure, and managing conflicts of interest. Mersinger concluded by urging the U.S. Senate not to reopen negotiations: “The bill is already done, and the work has already been completed. On September 15, the Senate has an opportunity to move it forward—just pass it.”