stable coins

Story: CLARITY Act Clears Committee, but US Crypto Rules Still Trail EU and Singapore

By Jean-Luc Maracon

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Where the US Falls Short on Custody Rules. The CLARITY Act does get one thing right: it bans co-mingling of client and firm assets, and it…

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Stablecoin Rules and the Banking Industry's Fears. On stablecoins, the CLARITY Act is actually pretty concrete.

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The Gap Between Intent and Implementation. The EU's MiCA is probably the clearest benchmark here.

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The CLARITY Act passed the Senate Banking Committee. That's a big deal — but it's not the finish line, and it's not even close to catching up with what the EU or Singapore…

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For exchanges like Coinbase and Kraken, the bill offers something they've wanted for years: a federal framework that actually separates crypto spot markets from securities law…

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The CLARITY Act does get one thing right: it bans co-mingling of client and firm assets, and it requires client funds to sit with a qualified custodian.

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Compare that to Hong Kong, where rules already require 98% of client assets to stay in cold storage.

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Capital requirements are in the same boat. The EU and Singapore both use tiered capital thresholds based on what services a firm offers. The US hasn't published specific figures.

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On stablecoins, the CLARITY Act is actually pretty concrete. Issuers would need to maintain 1:1 reserves backed by cash or US Treasuries, publish monthly public disclosures, and…

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Read also: Bitcoin Surges to $82K as Senate Panel Backs CLARITY Act for Crypto Regulation

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But US banking groups aren't thrilled. Their concern is pretty straightforward: stablecoin offerings backed by Treasuries start to look a lot like deposit products, and that…

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The UAE adds another wrinkle worth watching. Foreign stablecoins — think USDC — are restricted to licensed platforms there and banned entirely from retail settings.

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Stablecoin adoption across Asia has grown sharply in recent years, which is part of why regulators in Singapore and Hong Kong moved early.

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The EU's MiCA is probably the clearest benchmark here. Licenses are passported across member states, meaning a firm approved in one EU country can operate across the bloc.

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Related: Stablecoin Rewards Battle Pits Crypto Firms Against Banks as CLARITY Act Hits 100+ Amendments

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