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\u2019s last markup expected in May.\u00a0<\/p>\n
But Morgan Creek Capital CEO Mark Yusko says the legislation\u2014despite broad praise from much of the crypto industry\u2014could actually prolong the current downturn in digital assets.<\/p>\n
In a YouTube interview <\/a>with Paul Barron published Tuesday, Yusko described the CLARITY Act as \u201ca horrible bill,\u201d 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.\u00a0<\/p>\n Yusko also questioned the motivations behind the bill, saying it appears to have been written by \u201cbig incumbents,\u201d which he further clarified as large banks.\u00a0<\/p>\n During the interview, the executive pointed to remarks attributed to Bank of America CEO Brian Moynihan, claiming the bank would \u201close trillions of dollars of deposits\u201d if customers were able to earn stablecoin yields<\/a>.\u00a0<\/p>\n 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.<\/p>\n \u201cThere\u2019s no mystery about it,\u201d 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.\u00a0<\/p>\n Yusko referenced her earlier support for President Trump\u2019s strategic Bitcoin reserve <\/a>plan, then contrasted it with her backing of the CLARITY Act. In his view, the shift doesn\u2019t make sense in light of what many see as the bill\u2019s likely direction.<\/p>\n On Tuesday, Senator Thom Tillis told reporters that he doesn\u2019t 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.<\/p>\nLummis Rejects Further CLARITY Act Delays<\/h2>\n