Former CFTC Chairman: Banks Need Clarity Act More Rather Than Crypto Companies

According to Foresight News, former CFTC Chairman Christopher Giancarlo has highlighted that the stalled U.S. Digital Asset Market Clarity Act is more crucial for banks than for crypto companies. Giancarlo noted that banks' general counsels have informed their boards that, without regulatory clarity, they cannot invest billions in building digital payment infrastructure.The legislation is currently deadlocked over the issue of whether crypto companies should be allowed to pay rewards to stablecoin holders. The Senate Banking Committee has proposed banning such rewards to prevent bank fund outflows, a move opposed by the crypto industry. Giancarlo warned that if the act remains blocked due to banking resistance, crypto businesses might shift to Europe and Asia. He estimated a 60% chance of the act passing and mentioned that stakeholders have missed the March 1 deadline set by the White House.