Senator Josh Hawley recently explained why he voted against the CLARITY Act. His reason did not sit well with Ripple CTO Emeritus David Schwartz.
Schwartz responded to Hawley on X, writing, “He said the quiet part out loud. It’s about protecting bank profits.”
The U.S. Senate voted down the CLARITY Act on September 15. The bill needed 60 votes to pass cloture, but received only 49. The XRP community had followed its progress for months. Schwartz’s post cut straight to what he believed was driving the opposition.
He said the quiet part out loud. It's about protecting bank profits. https://t.co/73Bnqt3o4k
— David 'JoelKatz' Schwartz (@JoelKatz) September 17, 2026
Hawley’s Explanation
Hawley was one of four Republicans who voted no. He cited concerns about Missouri’s agricultural economy, saying farmers feared they “won’t be able to get loans from small-town banks, because investors will leave those banks chasing the yields available under the bill.”
He argued the bill could drain capital from rural community banks. Hawley also noted that Senator Jerry Moran, another Republican no-vote, has proposed language to fix the issue. He called it “pretty doable,” adding: “We’ve got to make sure those banks stay in operation, stay competitive, and have enough capital to make loans.”
Schwartz’s Read
Schwartz rejected the stated reasoning. His post pointed to financial self-interest as the driving force behind the opposition. Multiple Bank groups came together to oppose the bill, and Schwartz suggests that influence drove Hawley’s vote. He sees the vote as institutional resistance to crypto legislation rather than genuine concern for rural communities.
The CLARITY Act had cleared significant hurdles before reaching the Senate floor. Republicans also made over 100 changes to the bill, and President Trump agreed to ethics provisions Democrats had requested. However, that was not enough for Democrats. Senate Democrats later submitted a last-minute counteroffer, which was rejected.
Challenging the Farming Argument
Schwartz pushed back on Hawley’s concerns. “I don’t think the Clarity Act would meaningfully reduce the ability of banks to make loans,” he wrote. He went further, arguing that even if it did, the outcome would not necessarily hurt farmers.
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A thriving ecosystem of investors seeking reasonable yields would emerge to provide those same loans, he said, replacing any lost bank capacity.
The Road Ahead for XRP
The bill’s failure leaves XRP and the wider crypto market without a federal regulatory framework. The SEC and CFTC will continue building crypto rules through guidance. SEC Chair Paul Atkins has said those rules lack durability without a statutory foundation.
Schwartz’s reaction reflects the XRP community’s stance. They think the vote protects institutions at the expense of progress.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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