Trump Administration Seeks Senate GOP Support for CLARITY Act

The Trump administration is working to secure Senate Republican support for the CLARITY Act, while bank groups said Monday that recent revisions still do not make the stablecoin provisions acceptable. Some Republican senators, including John Cornyn of Texas, may side with banks and vote against the measure. According to Foresight News, Cornyn said the latest text does not appear to address community banks' concerns about deposit outflows. The Council of Economic Advisers will launch an interactive tool on Tuesday that lets users set parameters and run scenarios to test its earlier conclusion that there is no significant link between stablecoin growth and community bank deposit outflows. Patrick Witt, executive director of the President's Digital Asset Advisory Council, said the data show the banking lobby's deposit outflow narrative lacks support and that the bill includes safeguards for community banks. Democratic lawmakers also remain dissatisfied with the latest ethics language, saying it does not sufficiently restrict U.S. President Donald Trump and his family. Senator Adam Schiff said the provision does not effectively apply to the president and first family, while Mark Warner said the ethics language is far from adequate. Some Democrats are still negotiating changes before the vote.