American Bankers Association CEO Rob Nichols said the banking lobby wants the Clarity Act to succeed — but small tweaks to the bill still need to be made.
talk on Squawk Box on CNBC Show Wednesday, Nichols He said That while there is “a lot of good” in the Clarity Act, the problem with stablecoins and local lending needs to be resolved.
A number of lawmakers are hoping that the Clarity Act — which would define the regulation of cryptocurrencies in the United States — will be passed before Congress leaves for its August recess. But the sticking point in the bill was related to bank chiefs’ concerns about stablecoin returns.
“The bill is about 600 pages long, and there are only two paragraphs where we propose small surgical amendments,” Nichols said.
“I believe the crypto and banking sectors can coexist. I believe we can be the cryptocurrency capital of the world and I believe we can be the banking capital of the world.”
The bill was approved last year by the House of Representatives but reached a deadlock after bank bosses Raised concerns on stablecoins and the return they are likely to pay to clients.
America’s largest cryptocurrency exchange, Coinbase, Withdrew support The bill was drafted in January after a row with bank bosses who said yielding on stablecoins should be banned.
US banks said they could lose customers if cryptocurrency exchanges offer more attractive products to their deposit base.
Faryar Shirzad, chief policy officer at Coinbase, this week brushed off concerns from the banking lobby, claiming that major lenders are already adopting cryptocurrency technology.
Major US banks – including JPMorgan and Bank of America – have expressed interest or have already begun launching stablecoin products, which run on blockchain technology.
A new draft circulated last week prohibits officials and their families from issuing or promoting cryptocurrencies — something opposition lawmakers had previously objected to.
Republican lawmakers are pressuring Democrats to pass the bill. There is bipartisan support for the bill although some lawmakers — such as Sen. Elizabeth Warren — have criticized the project. claim It will allow President Donald Trump to make money from cryptocurrencies, as well as benefit criminals.
Major institutions, including Fidelity and Goldman Sachs, as well as cryptocurrency lobbyists and politicians, said the revised bill works in its current form.
