Many participants in the US crypto industry are unhappy with the updated version of the CLARITY Act.
The US Senate Banking Committee will vote on the new version of the CLARITY Act on May 14. However, the bill already faces significant opposition. The Bitcoin Foundation editorial team examined what is causing public discontent.
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Main Disagreements
1. Labor Unions
Major US unions, including SEIU, AFT, NEA, AFSCME, and AFL-CIO, have sent a sharp letter to senators urging them to reject the bill. They believe that legalizing cryptocurrencies creates excessive risks for pension funds and the savings of ordinary workers.
“The bill encourages the crypto industry to take excessive risk. If those risky bets don’t pay off, workers and retirees will pay the price, not crypto billionaires,” the letter states.
2. Democrats and Ethics
Democrats, including Senator Elizabeth Warren, are demanding the inclusion of strict ethics amendments. They insist on banning officials, members of Congress, and their families, including the Trump family, from participating in crypto businesses or profiting from digital assets. Without these amendments, Democrats threaten to block the final Senate vote.
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3. Banking Lobby
The American Bankers Association continues to criticize even the compromise version on stablecoins. Bankers argue that the ban on paying interest on stablecoins still creates loopholes and encourages deposit outflows from traditional banks.
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What the Bill Contains
Despite the criticism, the current version of the CLARITY Act includes provisions important for the industry:
- Protection for DeFi developers from criminal liability
- Clear separation of stablecoins as a payment instrument vs. an investment product
- A permanent exemption for Bitcoin (BTC) and Ethereum (ETH) from being classified as securities
The committee vote is scheduled for May 14. Final passage in the Senate will require 60 votes, making compromise on ethics and banking positions decisive.
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