The Blockchain Leadership Fund (BLF) is a new Political Action Committee (PAC) that aims to advance digital asset policy, just as legacy banks are holding up the CLARITY Act due to fears of new competition from blockchain firms.
The CLARITY Act, or crypto market infrastructure legislation, is being held up by legacy banks that do not want stablecoin holders to earn a return (yield) on these assets. Banks, which have long been formidable lobbyists, are fighting this possibility by arguing that they would have to pay higher interest rates to depositors.
Led by Anchorage Digital, Chainlink Labs, and The Digital Chamber, the “hybrid PAC” will support both candidates and independent expenditures. The PAC is expected to advocate on both the federal, state, and local levels.
A spokesperson for Anchorage Digital explained:
“Crypto policy is being written right now, and the companies that show up and engage will help define the rules of the road; the ones that don’t will inherit them. At Anchorage Digital, we’ve always believed that responsible innovation requires active participation, which is why we’re proud to support the Blockchain Leadership Fund at such a pivotal moment for the industry.”
A Chainlink Spokesperson added that the path is clear yet fragile.
“BLF is ensuring the policy environment can scale that adoption with the clarity and momentum the industry requires.”
The stablecoin yield issue is emblematic of the policy battle: higher yields for stablecoin holders would clearly help consumers and businesses, yet there is no evidence that they would negatively impact legacy bank operations.
Expectations are for an updated bill to surface this week, with it soon going to markup and a vote by May. It remains unclear what, if any, compromise is in place to satisfy both sides of the debate.