WASHINGTON–The Senate is expected to vote today on the CLARITY Act.
The Clarity Act seeks to establish the first comprehensive federal regulatory framework for cryptocurrency and digital assets in the United States, and creates market structures for exchanges, custody providers, and stablecoin issuers to bring formal oversight to the crypto industry.
The crypto industry and the traditional financial services industry, including credit unions, have been on opposite sides of many of the provisions in the CLARITY Act as it has worked its way through Congress.
America’s Credit Unions said the Senate is expected to put the act on procedural vote requiring bipartisan support to pass. Democrats and Republicans have been previously unable to reconcile key provisions of the legislation, the trade group noted.
Concerns Raised by DCUC
Meanwhile, the Defense Credit Union Council noted it has raised in previous letters to Senate Banking Committee members and Senate leadership; one being continued ambiguity surrounding residency requirements and how those provisions could affect Americans living and working overseas.
DCUC said it is concerned that unclear residency requirements could create unintended barriers for credit unions seeking to serve members while they are outside the United States and added it plans to submit additional comments to the Senate calling for workable solutions that allow credit unions to continue serving these members.
As the CU Daily reports separately, DCUC Chief Advocacy Officer Jason Stverak has also flagged concerns around new provisions in the legislation provide certain authorities or protections to community banks and other banking institutions without expressly identifying credit unions or the National Credit Union Administration.
‘No Explicit Reference’
“The latest legislation includes language addressing potential negative effects on savings and deposits at banks with $10 billion or less in assets but does not provide the same explicit reference to credit unions,” DCUC said, adding that its position is that legislation providing regulatory authorities, benefits, or protections to similarly situated community financial institutions should provide comparable treatment to credit unions.
