- US Senate vote on Clarity Act cancelled with no new date set.
- Hoskinson says the Act won’t likely pass this cycle.
- Trump’s administration will use the Acts as leverage for votes in coming elections.
The crypto community have been sharing their collective disappointment in the delayed vote on the Genius and Clairty Acts. In detail, the US Senate vote on Clarity Act was cancelled for the time being, leading the Founder of the Cardano ecosystem to state that crypto may have lost its shot at the Genius and Clarity Acts from passing this bull cycle. Specifically, he claims that the window is lost and won’t get a chance till 2029.
US Senate Vote on Clarity Act Cancelled
The surreptitious cancelling of the US Senate vote on the Clarity Act has left many confused about the reason. Meanwhile, other unexpected moves have also surprised the crypto community. For instance, the CEO of Coinbase, Brian Armstrong, says they won’t support the Crypto Market Structure Bill. Do these moves connect, and if so, what impact could they bring to the crypto market?
As we can see from the post above, this reputed crypto analyst explores reasons behind these reactions and unexpected delays. To start off, he talks about the fact that there are no yield on stablecoins, and how the Clarity Act will prohibit any yield given to stablecoin holders. This is beneficial for banks, as it’ll kill their competition. Even the JP Morgan CFO said that if stablecoin yields were to happen, a massive outflow from banks would happen.
Next, the Clarity Act forces ‘tokenized financial instruments’ into the SEC’s strict securities framework. This limits innovation by requiring centralized control for compliance, which bans peer-to-peer or DeFi-style tokenization of stocks. Additionally, the Clarity Act requires AML/KYC, which prohibits anonymous and permissionless DeFi. It also requires user identification and transaction monitoring, which kills the purpose of DeFi.
The post concludes that if one was to pay attention to all these things, they’ll find something common. Most of the things in the Clarity Act have been written in favour of the banking industry and not crypto. Banks don’t want to lose their monopoly, so they are trying to kill the crypto innovation. Big banks know that their days are numbered, and now they are at the ‘then they fight you’ stage.
Hoskinson Says Act Won’t Likely Pass This Cycle
As we can see from the post above, Charles Hoskinson says that Crypto Czar David Sacks should resign as he has failed the crypto community as an industry. He also says that crypto has likely lost its window on passing the Genius and Clarity Act, as they will use this for a talking point to win the coming elections. He concludes by saying that, realistically, the Acts won’t get another chance to pass until probably 2029.