David Schwartz, Ripple’s CTO emeritus and chief architect of the XRP Ledger, linked the Senate’s September 15 failure to advance the CLARITY Act to pressure from traditional banks. Responding on X to Senator Josh Hawley’s concerns about community-bank deposits, Schwartz said the fight was about protecting bank profits, presenting that as his interpretation of the vote rather than an established cause.
He said the quiet part out loud. It's about protecting bank profits. https://t.co/73Bnqt3o4k
— David 'JoelKatz' Schwartz (@JoelKatz) September 17, 2026
The Senate rejected cloture on the motion to proceed to H.R. 3633 by 49-50, short of the 60 votes required. Hawley has argued that yield-bearing stablecoins could pull deposits from community banks and weaken lending to farmers and small businesses, while Schwartz disputed that premise and said he did not expect the bill to materially reduce banks’ lending capacity.
The legislation remains stalled rather than permanently defeated, and the Senate record leaves open the possibility of further procedural action. The next question is whether lawmakers can bridge disputes over stablecoin yield, banking concerns and other unresolved provisions before another attempt to advance the broader digital-asset market structure bill.
Source: David Schwartz.
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