Crypto Group Challenges Banks Proposal With Its Own Bill Suggestions

The CLARITY Act has taken yet another surprising turn as debates on its implementation continue. A crypto group has challenged the banks’ proposal on the crypto bill with a new set of principles.

Crypto Group Counters Bank CLARITY Act Proposal With New Rules

Blockchain trade association, Digital Chamber, shared its own principles in defense of the current draft bill.  The latest principles also state that the bankers’ demand for a two-year study on the impact of stablecoins on deposits is acceptable, but not if it comes with an automatic regulatory rulemaking.

This came after no exact resolution was reached after the White House meeting between banks and crypto firms this week, even though progress was insinuated. The banks stood firm that any kind of yield or reward for stablecoins is not acceptable.

They said that the yields could be harmful to the depository function of the U.S. banking system. They then distributed a document containing a proposal that could be acceptable for the CLARITY Act.

Digital Chamber CEO Cody Carbone stated to lawmakers that they are ready to come to a compromise. They said that they are willing to yield on anything that looks like an interest payment for static holdings of stablecoins, which would most closely resemble a bank savings account.

Carbone pointed out that the fact that the industry foregoing rewards for holding stablecoins is already a big concession in the CLARITY Act. He also added that crypto firms should still be able to offer rewards for customers. Most importantly, those who participate in transactions and other activities.

Patrick Witt Provides Update on Crypto Bill Status

In an interview with Yahoo Finance, the executive director of the President’s Council of Advisors for Digital Assets, Patrick Witt, shared insights on the proceedings of the crypto bill.

Witt warned that the window for passing the CLARITY Act is “rapidly closing.”  He noted that the political calendar is turning its attention to the upcoming midterms.

He said that in order to get the bill passed, there needs to be agility between the crypto community and big banks. Witt said this is why the council has had “numerous” meetings at the White House to reach a middle ground.