A key US crypto policy bill, the CLARITY Act, is now moving through its final stages in the Senate, with potential action tied to the Senate Banking Committee’s last markup expected in May.
But Morgan Creek Capital CEO Mark Yusko says the legislation—despite broad praise from much of the crypto industry—could actually prolong the current downturn in digital assets.
Bear Market Could Extend Beyond October
In a YouTube interview with Paul Barron published Tuesday, Yusko described the CLARITY Act as “a horrible bill,” warning that if it passes, it would not trigger the bullish shift many investors are hoping for. Instead, he argued that bearish conditions could continue well beyond September and October.
Yusko also questioned the motivations behind the bill, saying it appears to have been written by “big incumbents,” which he further clarified as large banks.
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During the interview, the executive pointed to remarks attributed to Bank of America CEO Brian Moynihan, claiming the bank would “lose trillions of dollars of deposits” if customers were able to earn stablecoin yields.
Yusko said this is exactly the kind of incentive that would push large financial institutions to resist competition, arguing that if people can earn yield in alternative places, they will move their capital.
“There’s no mystery about it,” Yusko suggested, implying that big banks are signaling their priorities more openly than many expect. He also said he was confused by what he called a political reversal he noticed around Senator Cynthia Lummis.
Yusko referenced her earlier support for President Trump’s strategic Bitcoin reserve plan, then contrasted it with her backing of the CLARITY Act. In his view, the shift doesn’t make sense in light of what many see as the bill’s likely direction.
Lummis Rejects Further CLARITY Act Delays
On Tuesday, Senator Thom Tillis told reporters that he doesn’t expect a CLARITY Act markup in April and said the committee should instead focus on May. If that is the case, the week of May 11 would become the first possible window, especially since the Senate is scheduled to be in recess before then.
Crypto In America reported that for a next-week markup to occur, the committee would need to notify members by this Friday. That notification reportedly has not happened, which the report ties to signals from the stablecoin-yield negotiation process.
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Lummis, however, has publicly pushed back on the idea of further delay in the CLARITY Act passage. In a statement to Crypto In America, she said, “Further delay is unacceptable.”
She added that she is “really proud of the bipartisan progress we’ve made” and that she won’t allow colleagues to sacrifice substantive and good progress for what she described as the pursuit of a “perfect bill” that will never come.
The pro-crypto Senator also warned that the “offshore risk is real” and that the window for action is closing. “It’s time to finally get this done,” she concluded.
Featured image from OpenArt, chart from TradingView.com