Why banks and offshore hubs like Dubai are winners of the Senate killing the Clarity Act

The Clarity Act’s 49-50 Senate cloture vote means the crypto industry will not get the federal market structure framework it had sought. Instead, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) will continue to shape policy through existing rules, interpretations and exemptions.

The legislative battle over the bills was not only about crypto oversight, but it also exposed a struggle over whether stablecoin platforms could offer rewards that might compete with bank deposits, as well as ethical considerations for people in government.

“Banks won this round. But the reason they are fighting so hard is that banks increasingly see stablecoins as competition for deposits, not just as another crypto product,” said Anton Golub, head of exchange go-to-market at Forte, in a Telegram message.