Negotiations over the CLARITY Act — the Senate’s long‑anticipated crypto market‑structure bill — appear to be nearing a conclusion, but key details remain under wraps, and no official date has been set for a Senate Banking Committee markup.
Banks’ Concerns AddressedThis signals that negotiators believe they are close to bridging a central divide: banks’ concern that yield on stablecoin deposits could prompt deposit flight and strain traditional lending, versus crypto firms’ desire for commercially viable yield options.
Reporting by Eleanor Terrett of Crypto In America added new detail to the picture. Terrett said the White House has tentatively reached a compromise with Senators Thom Tillis and Angela Alsobrooks, who have worked for nearly two months to hammer out language tied to the CLARITY Act.
Senate To Hear Crypto, Banking Feedback This WeekIndustry engagement with the process is continuing this week. Crypto trade association representatives are scheduled to meet with the Senate Banking Committee later Monday, while banking groups are set to review the draft text on Tuesday.
While the draft reportedly will include a ban on yield on idle balances, other sensitive topics remain unresolved. Terrett reported that the bill still needs work on several areas, including decentralized finance (DeFi), token classification, and tokenization.
Those sections will require careful drafting to balance innovation, investor protection, and financial stability before the Banking Committee’s chair, Senator Tim Scott, can move to schedule a markup.
Featured image from OpenArt, chart from TradingView.com
