On FinTech TV’s “Market Movers” program, broadcast from the New York Stock Exchange (NYSE), Cleve Mesidor, Executive Director of the Blockchain Foundation, discussed recent developments regarding the structuring of the cryptocurrency market and the CLARITY Act.
Responding to questions from host Remy Blaire, Mesidor stated that the bill was nearing the markup stage in the Senate Banking Committee, adding, “All eyes are on the Senate Banking Committee.”
Mesidor discussed the steps to pass the CLARITY Act. “Clarity and bipartisan cooperation are needed to get this law to the finish line,” Mesidor said, noting that the Senate Agriculture Committee had already completed the markup process. He added that discussions were ongoing at the staff level in the Senate Banking Committee and that proposed amendments were circulating, indicating that they expected a markup hearing soon.
However, Mesidor also expressed some disappointment. Specifically, he said his proposed amendment to include smaller financial institutions such as Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) was rejected. He stated that this amendment would have required a federal study by the Fed, the OCC, and the FDIC, adding, “These small institutions are critical to filling the financial deserts in America.” He noted that a small group opposing the amendment was the Association of Community Development Bankers, and their objection was related to the timing. Mesidor shared his disappointment, pointing out that a similar provision for credit unions was included in the FIT21 Act, but there was no provision for these smaller institutions in the market restructuring law.
Nevertheless, Mesidor painted an optimistic picture, stating that the markup process was possible and that this step would pave the way for compromise in the Senate. “It’s a long process, but a markup in the Senate Banking Committee creates a path to reconcile the bill between both houses,” Mesidor said, predicting a vote by July if the Speaker of the House could schedule it. However, he acknowledged that while the possibility of the bill failing still exists, it is low.
*This is not investment advice.