SEC Chair Paul Atkins Throws Full Support Behind the CLARITY Act

Key Insights:

• Paul Atkins backs the CLARITY Act and offers SEC technical support for Congress.
• Credit unions support the CLARITY Act but seek stricter stablecoin yield rules.
• Senators continue CLARITY Act negotiations as cloture timing shifts to next week.

The CLARITY Act moved back into focus after US SEC Chair Paul Atkins publicly pledged support for Congress as lawmakers continued work on digital asset legislation.

Atkins said he would provide technical assistance to lawmakers and described a regulatory framework as necessary for American leadership in digital finance.

His remarks came as Senate scheduling uncertainty delayed expectations for a procedural vote, while credit unions formally endorsed most of the legislation and urged lawmakers to strengthen provisions covering stablecoin yield.

At the same time, negotiations continued across party lines, with senators working on revised legislative language before the Senate’s August recess. The move placed the bill at the center of discussions involving regulators, lawmakers, financial institutions, and digital asset stakeholders.

CLARITY Act Receives Support From US SEC Chair Paul Atkins

US SEC Chair Paul Atkins said he remains committed to supporting Congress as it advances the CLARITY Act. He said the agency would provide technical assistance throughout the legislative process.

Atkins also said American leadership in digital finance requires regulations that match innovation. His statement focused on building a framework capable of supporting the industry’s continued development.

However, attention also shifted to the Senate calendar. Journalist Eleanor Terrett reported that expectations for a cloture vote this week had weakened.

She said Senate Majority Leader John Thune would have needed to file cloture on the motion to proceed to enable a Thursday vote. According to people involved in the process, the Russia and Iran sanctions bill is expected to receive priority instead.

Terrett added that industry stakeholders now consider it important for Senate leadership to begin the cloture process before lawmakers leave for the August recess.

Credit Unions Back the CLARITY Act While Seeking Stablecoin Changes

Support for the CLARITY Act also expanded among credit union organizations. Terrett reported that former National Credit Union Administration Chairman Rodney Hood recently said credit unions should play an important role in modernizing the financial system.

Days later, America’s Credit Unions, together with all 50 state credit union leagues, expressed support for most of the legislation. The organization also echoed concerns previously raised by banks regarding stablecoin yield provisions.

In a letter addressed to Senate leaders John Thune and Charles Schumer, the group welcomed provisions granting the National Credit Union Administration authority over credit unions participating in digital asset services.

The letter also supported language allowing both federally chartered and federally insured state-chartered credit unions to participate in digital asset activities under Section 401.

The organization nevertheless urged lawmakers to strengthen Section 404. It said the current language could permit “functionally passive” reward structures that may encourage deposits to move away from traditional credit unions. It also argued that long-term holding of payment stablecoins should not receive incentives and called for tighter restrictions on interest or yield.

Senate Negotiations Continue Ahead of August Recess

Legislative discussions continued alongside those developments. Crypto In America highlighted Rodney Hood’s view that credit unions have an important role in the financial system, noting his previous leadership at both the National Credit Union Administration and the Office of the Comptroller of the Currency.

Meanwhile, another update indicated negotiations remained active in the Senate. According to Politico, Senators Ruben Gallego and Thom Tillis are finalizing language for a Democratic counteroffer on the CLARITY Act.

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