US Senate Vote on Clarity Act Cancelled
The crypto community has expressed collective disappointment following the delayed vote on the Clarity Act. The US Senate vote on the Clarity Act was cancelled for the time being, leading the Founder of the Cardano ecosystem to state that crypto may have lost its opportunity for the Clarity Act to pass this bull cycle. He claims that the window has passed and won't be revisited until 2029.
The unexpected cancellation of the US Senate vote on the Clarity Act has left many confused about the reasons. Meanwhile, other surprising developments have also unsettled the crypto community. For instance, the CEO of Coinbase, Brian Armstrong, has stated that they will not support the Crypto Market Structure Bill. The question remains whether these moves are connected and what impact they could have on the crypto market.
This reputed crypto analyst explores potential reasons behind these reactions and unexpected delays. One key point raised is the absence of yield on stablecoins and how the Clarity Act would prohibit any yield given to stablecoin holders. This prohibition would benefit banks by eliminating a significant source of competition. The JP Morgan CFO has previously stated that if stablecoin yields were to be implemented, a massive outflow from banks would occur.
Furthermore, the Clarity Act would force 'tokenized financial instruments' into the SEC's stringent securities framework. This would stifle innovation by necessitating centralized control for compliance, effectively banning peer-to-peer or DeFi-style tokenization of stocks. Additionally, the Clarity Act mandates AML/KYC, which is incompatible with anonymous and permissionless DeFi. It also requires user identification and transaction monitoring, thereby undermining the fundamental purpose of DeFi.
The analysis concludes that a common thread runs through these provisions: most of the Clarity Act's elements appear to favor the banking industry over crypto. Banks are reportedly seeking to protect their monopoly by hindering crypto innovation. Large banks are aware that their dominance is diminishing and are now in the 'then they fight you' phase.
Hoskinson Predicts Act Won't Likely Pass This Cycle
In the post shown above, Charles Hoskinson suggests that Crypto Czar David Sacks should resign, asserting that he has failed the crypto community as an industry. Hoskinson also believes that crypto has likely missed its window for the Genius and Clarity Acts to pass, as these acts will likely be used as talking points to win upcoming elections. He concludes realistically, stating that the Acts are unlikely to have another chance to pass until approximately 2029.