White House pulls out all the stops for CLARITY Act vote

The Trump administration is making a last-ditch attempt to gather enough support in the Senate for the CLARITY Act, a law that regulates oversight of digital assets. Ahead of the procedural vote on Tuesday, the bill is meeting resistance from both bank lobbyists and part of the Democratic caucus. The White House Council of Economic Advisers will present an interactive analysis model on Tuesday to rebut the banks’ objections.

In brief:

• The White House is launching an interactive model to demonstrate that stablecoin growth does not cause a flight of savings from regional banks.
• Several Republican senators are considering voting against, partly at the urging of banking organisations.
• Crypto-friendly Democrats believe the ethics restrictions on Trump do not go far enough.

Banks fear flight of savings, White House disputes it

Banking organisations said on Monday that recent amendments to the bill are insufficient to remove their objections. This concerns in particular the stablecoin provisions, which banks fear will prompt customers to move their savings into digital assets.

The White House rejects that reasoning. Chris Phelan, chairman of the Council of Economic Advisers, told Semafor that users can use the new model to run their own scenarios and see why the council previously concluded that there is no link between stablecoin growth and an exodus of bank deposits. Patrick Witt, executive director of the Presidential Advisory Council on Digital Assets, stated that the CLARITY Act offers protection to regional banks if such a scenario were ever to occur, but that banks would miss out on that protection if the bill fails.

Republicans waver, Democrats unhappy with ethics rules

The bill divides oversight of digital assets between the SEC and the CFTC and needs the support of at