Charles Schwab, a brokerage firm that manages $13 trillion in client assets, has stepped into the fray in support of the CLARITY Act. The company’s backing comes as Congress has been increasingly pushed for action ahead of its August recess.
Charles Schwab Backs CLARITY Act
In a statement, Jim Ferraioli, director of digital currencies research and strategy at SCFR, supported the CLARITY Act. He said, “It’s a critical moment for the long-awaited Clarity Act.” He added that U.S. lawmakers “appear poised to finally drag the market structure bill across the goal line.”
The latest backing comes months after Charles Schwab expanded its crypto business through Schwab Crypto, allowing eligible clients to directly buy Bitcoin and Ethereum. Its rollout started with employees and then gradually expanded to other eligible accounts in 48 states in the U.S., growing the firm’s interest in a clear regulatory framework for digital assets.
The CLARITY Act would create a separate authority for the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In May, the bill passed the Senate Banking Committee with a vote of 15-9, but has not yet been considered by the full Senate.
What’s Next For The Crypto Market Structure Bill In Senate?
In recent years, there’s been increased institutional support for crypto, but there’s still a question as to whether lawmakers can get the CLARITY Act across the finish line before the August recess of the Senate. However, Senate Majority Leader John Thune recently admitted the tight schedule and that the legislation doesn’t have enough votes.
Still, Thune said, “I would like to at least get Clarity started. We’ll see where the votes are.” However, experts have even hinted that the crypto bill could slip to November owing to ongoing election politics.
Nonetheless, the White House is more upbeat. Patrick Witt, executive director of the White House Crypto Council, said, “There’s that first week of August that the Senate is in session.” He suggested that a Senate floor vote for the CLARITY Act could still take place before lawmakers leave for the break.
The negotiations are ongoing on a number of outstanding issues, such as the government ethics rules that public officials are subject to, and the treatment of stablecoin yield. Discussions have gone forward, but the Senate’s legislative calendar has been filling up, and leadership has been focused on other big legislation.
Meanwhile, Charles Schwab’s Ferraioli also pointed to the possible effect the bill might have on the market if it becomes law. He said: “Failure to pass the bill before the Senate’s August 10 summer recess could delay it until after the midterms.” If lawmakers approve the measure, “the ‘institutional adoption’ narrative will likely come alive again, perhaps driving bitcoin higher in the short term,” he said.
Ferraioli also noted that another postponement would “likely wouldn’t have much impact on bitcoin’s price, given that it sits near the bottom of a longish bear market.”