Alsobrooks says Clarity Act needs ethics deal before Senate vote The Maryland Democrat says bipartisan crypto legislation is close, but ethics and illicit finance concerns remain unresolved.
Latest developments: Sen
Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach agreement on ethics provisions and other outstanding issues. – Alsobrooks said ethics concerns remain a major sticking point, alongside illicit finance provisions and work still needed in the Agriculture Committee. – She characterized her committee vote advancing the bill as support for continued bipartisan negotiations, not unconditional support for final passage. – “We’re almost there, but not quite there yet,” Alsobrooks said of the negotiations. – Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol. The compromise: Alsobrooks defended the stablecoin yield language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry. – She said she was among the first senators to raise concerns that allowing interest-bearing stablecoins could trigger deposit flight from community banks. – According to Alsobrooks, negotiators spent roughly nine months crafting language that bars crypto firms from paying yield solely on stablecoin balances and prevents firms from offering products that mimic bank accounts without bank-like protections. – She argued the final compromise balances industry innovation with consumer and banking-sector protections, even if neither side is fully satisfied. Why it matters: Alsobrooks framed crypto regulation as a response to growing consumer adoption rather than a speculative future policy debate. – She noted that tens of millions of Americans already own cryptocurrency and said lawmakers have a responsibility to establish consumer protections. – The senator argued that digital assets represent an economic opportunity many younger Americans believe they need as…