Small Business Majority sends letter urging lawmakers to address harmful loopholes in the CLARITY Act

On July 13, Small Business Majority sent a letter to congressional leadership urging lawmakers to address harmful loopholes in the Digital Markets Clarity (CLARITY) Act that threaten to reduce the availability of reliable capital for small business loans through traditional financial institutions. In its current form, the CLARITY Act, a legislative framework aimed at regulating the cryptocurrency industry, would not only expand access to unregulated financing products that pose serious risks to small business borrowers, but incentivize deposit flight from traditional banks due to a provision that allows crypto companies to pay yields directly to Stablecoin holders. The letter urges Congress to reconsider its hasty passage of legislation that will inevitably disrupt the traditional banking sector without the proper protections needed to ensure that the small business lending ecosystem will continue to remain accessible to those powering our economy across the country.