- The Cryptocurrency Regulation Clarity Act in the US may hit another hurdle.
- Five trade unions (service workers, teachers, municipal employees, etc.) have come out against the bill, which will “introduce volatility into retirement savings accounts.”
Five labor unions have called on the US Senate to vote against a bill to structure the cryptocurrency market, arguing that the legislation would expose workers’ retirement accounts to cryptocurrency volatility, the CNBC.
The unions have drafted a letter arguing that if the bill is passed, potential losses will be borne by workers, not crypto companies. The letter states that “without sufficient regulation, the introduction of cryptocurrencies… and other digital assets into the real economy will have a destabilizing effect, benefiting issuers and platforms at the expense of workers.”
Union opposition isn’t the only factor putting pressure on the bill ahead of its consideration by the Senate Banking Committee on Thursday, May 14. The American Bankers Association, for its part, expressed opposition to the updated language regarding the safekeeping of stablecoins.
The revised text aims to prohibit companies from paying out income on payment stablecoins. Its language has received support from Coinbase and the crypto industry at large. However, ABA CEO Rob Nichols, in a letter to bank executives on May 10, stated that this provision remains insufficient and “unreasonably encourages bank deposit outflows.”
Strategy Chairman Michael Saylor is positive appreciated consideration of the Clarity Act, linking the bill to the broader development of the digital asset market.
The Clarity Act amendment will usher in a new wave of digital capital, digital credit, and digital wealth in the U.S. and around the world, Saylor wrote, adding that it signals “the institutionalization of BTC, the creation of a foundation for STRC-based digital yield markets, and broader adoption of MSTR.”
Saylor added that he “recognizes activity-based rewards tied to payment stablecoins and distributed ledger participation as critical to driving innovation, competition, and consumer adoption.” Saylor called this the foundation for “responsible digital yield markets.”
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