TLDR
- Ripple CTO Emeritus Schwartz linked the CLARITY Act setback to pressure from the traditional banking sector.
- The Senate vote ended 49-50, falling short of the 60 votes needed to advance the bill.
- Senator Josh Hawley cited concerns that yield-bearing stablecoins could drain deposits from smaller banks.
- Schwartz argued that the bill would not materially weaken banks’ ability to provide loans.
- The SEC moved the effective date for Teucrium’s 2x Short Daily XRP ETF to October 11, 2026.
- XRP traded near $1.29 after the Senate vote as the broader crypto market came under selling pressure.
Ripple CTO Emeritus Schwartz has linked the Senate setback for the CLARITY Act to pressure from traditional banks. David Schwartz said lawmakers used concerns about local lending to defend bank profits rather than consumers. The Senate rejected cloture on H.R. 3633 by 49 votes to 50 on September 15. The measure needed 60 votes to open debate, leaving the broader digital asset framework stalled.
Ripple CTO Emeritus Schwartz Questions Bank Argument
Schwartz responded after Senator Josh Hawley defended his vote against advancing the bill. Hawley argued that yield-bearing stablecoins could pull deposits from Missouri banks and reduce credit for farmers and small businesses. Schwartz disputed that reasoning. He said the bill would not materially reduce banks’ ability to lend and argued that other lenders could serve borrowers if money moved toward higher-yield products.
Senators Susan Collins, Josh Hawley, Jerry Moran and Thom Tillis voted against cloture with Democrats and independents. Tillis changed his vote to no so he could seek reconsideration of the motion later. Banking groups have pushed Congress to restrict interest-like stablecoin rewards. They argue that deposit migration could weaken community-bank funding, while crypto supporters say the restrictions would protect banks from new competition.
A White House Council of Economic Advisers paper released this week estimated that banning stablecoin yield would raise total bank lending by only 0.02%, though banking groups contest that conclusion.
XRP ETF Filing Moves to October
Regulatory uncertainty also surrounds a planned inverse XRP fund. A September 11 SEC filing moved the effective date for the Teucrium 2x Short Daily XRP ETF to October 11, 2026. The filing states that the amendment only changes the effective date. It does not cite the CLARITY Act or give a policy reason for the delay, making a direct link unsupported.
XRP traded near $1.29 after the Senate vote as selling pressure spread across the broader crypto market. Blockonomi reported this week that XRP price slipped below $1.30 and posted the steepest 24-hour decline among the ten largest cryptocurrencies. Ripple CTO Emeritus Schwartz has continued to comment on U.S. crypto policy as lawmakers debate stablecoin rules and market structure. Ripple separately said the failed vote did not change XRP’s existing legal position in the United States.
