The Senate Banking Committee plans to mark up the CLARITY Act next week, but Democratic demands for conflict-of-interest rules and banking opposition to stablecoin rewards threaten to derail the effort. Negotiators reached a compromise on stablecoin yields earlier this month, yet banks argue the language still permits evasion. A long-delayed vote on the bill, which aims to clarify digital asset oversight between the SEC and CFTC, now hangs in the balance.
Senators Thom Tillis and Angela Alsobrooks proposed language that bars crypto firms from offering rewards resembling bank interest while allowing incentives tied to platform use. The American Bankers Association contends the draft still enables exchanges to reward account balances and tenure, pulling funds from insured deposits. This opposition persists despite the compromise that revived the bill's momentum after months of delay.
