The "_Clarity Act_" bill being pushed by the U.S. Congress is under additional pressure on the eve of a procedural vote. Disputes surrounding state-level law enforcement powers, stablecoin provisions, and the risks associated with community bank deposits continue to intensify, making the prospects for this bill to pass even more uncertain.
Warren's team questions the design of law enforcement
According to reports by journalist Brendan Pedersen from Punchbowl News, the team of Senator Elizabeth Warren from the Senate Banking Committee believes that the new law enforcement powers granted to state attorneys general by the bill are "not living up to their name."
Relevant teams stated that this state-level enforcement mechanism has not truly established an independent execution path, making it difficult to effectively implement the restrictive provisions of the legislation. Despite significant concessions made by Senate Republicans, opposition voices have not subsided.
18 state attorneys general publicly oppose
In addition to internal disputes within Congress, pressure is also being exerted at the state level. A bipartisan alliance of state attorneys general, led by New York State Attorney General Leticia James, has urged members of Congress not to push for the passage of the bill.
A total of 18 state attorneys general participated in this joint statement. The core argument is that the current text may weaken the ability of each state to investigate and combat crypto fraud. This declaration came a day before a procedural vote, making it a rather sensitive timing.
- The lead party is the Attorney General of New York State Letitia James.
- 18 state attorneys general signed the joint statement.
- The statement was made one day before the procedural vote.
Differences within the banking industry and within the Republican Party still exist.
The banking industry also opposes the latest version of the bill. Eight banking trade organizations have criticized the newly added "circuit breaker mechanism" in the bill, arguing that this design is still not sufficient to alleviate concerns that stablecoin incentive mechanisms may draw away community bank deposits.
Sen. Susan Collins, a Republican from Maine, stated that she has not yet decided whether to support the Clarity Act. She pointed out that the bill is over 600 pages long and includes new ethical provisions as well as other content that requires further review, such as whether community bank deposits will be affected.
As procedural voting approaches, the bill faces criticism from Democrats, opposition from state attorneys general, and pressure from the banking industry. Within the Republican Party, there is also no complete unity of stance, putting it in its most critical phase of deliberation at present.
