White House Launches Tool to Defend Crypto Bill
The administration claims data disproves bank fears of deposit flight.
The White House launched an interactive tool on Tuesday to counter claims of deposit flight from community banks. Officials stated the data shows no meaningful link between stablecoin growth and bank losses. The goal is to secure Republican support for the digital asset bill.
Senate Republicans face a vote on the legislation this week. The bill requires sixty votes to pass. Banking groups argue the current text does not provide enough protection for their institutions.
Administration Counters Bank Concerns
Chair Chris Phelan of the Council of Economic Advisers said the new tool allows users to run scenarios. It aims to demonstrate that stablecoin adoption does not cause deposit outflows. The CEA previously concluded that the deposit flight narrative is unsupported by data.
Patrick Witt, executive director of the Council of Advisers for Digital Assets, called the bank lobbying efforts misleading. He stated that the Clarity Act includes safeguards for community banks. He added that banks lose these protections if the bill fails.
Senators Divide Over Ethics Provisions
Republican Senator John Cornyn expressed doubt about the latest draft. He said he needs to see where the votes stand before deciding. Some Democrats are also unhappy with the text.
Senator Adam Schiff argued the ethics provisions do not apply to the first family. Senator Mark Warner stated the rules are not near enough to be acceptable. Democratic lawmakers are continuing to push for stronger oversight of the president.
Campaign Spending Remains Uncertain
The crypto industry holds tens of millions in campaign funds. This war chest is smaller than in previous cycles. Fewer Senate Democrats are up for reelection in competitive races.
A Senate Democratic aide said in-cycle candidates do not care about the money. However, some House Democrats are concerned. They want the industry to spend in their purple districts.
According to GN markets/crypto (en-US), a cryptocurrency executive noted that voters focus on ads rather than donors. The spending plans for this cycle have not been finalized. The vote on the bill is the primary focus.
