Rep. Stephen Lynch warns the Clarity Act will damage the banking system and weaken the dollar

The Digital Asset Market Clarity Act cleared the House in July 2025 with a 294-134 vote. Rep. Stephen Lynch of Massachusetts would like a word. Lynch, the ranking Democrat on the House Financial Services Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence, has become one of the most vocal critics of the legislation, arguing it would destabilize the banking system and erode the dollar’s global standing. What the bill actually does The CLARITY Act, formally H.R. 3633, is designed to draw a clean line between two federal regulators that have spent years fighting over crypto jurisdiction. Digital commodities would fall under the Commodity Futures Trading Commission. Tokens structured as investment contracts would stay with the Securities and Exchange Commission. The banking industry’s specific worry The concern that has mobilized banking trade associations against the bill centers on deposit flows. If stablecoins become easier to hold, easier to earn yield on, and easier to use for everyday transactions under a cleaner legal framework, consumers and businesses may move money out of traditional bank accounts and into digital alternatives. That shift matters ...