The CLARITY Act is moving into a tight, time-sensitive phase after the Senate Banking Committee released its draft on Friday. With the stablecoin compromise text now out in the open, attention is shifting to the long-awaited next step: a Senate Banking Committee markup.
CLARITY Act Heads Toward Committee ActionAt the same time, the bill would allow companies to offer rewards or incentives, as long as those incentives are not functionally or economically equivalent to interest earned on bank deposits.
The sticking point is the clause aimed at preventing rewards that are “economically or functionally equivalent” to interest on bank deposits—an effort to close loopholes, but one that may still leave room for interpretation.
A Senate Banking staffer captured that frustration in remarks shared on Friday: “Time for everyone to move on from yield. Banks should not turn a modest win into a loss.”
Per the report, industry leaders believe the markup could be announced later this week and held during the week of the 11th, when Congress returns from recess. If that timeline doesn’t work, another possible window is the week of the 18th, before the Senate leaves for the Memorial Day recess.
Final Language Not Done YetEthics-related issues are also still in play. Sources familiar with the process told Crypto In America that negotiations on ethics provisions are ongoing, and that talks could continue even after the CLARITY Act clears the Senate Banking Committee.
The leader also said that bipartisan approval is key to getting the CLARITY Act done, adding that without Democrats, the measure can’t move forward. At the same time, it’s unclear whether the process will stay along party lines, as it did in the Senate Agriculture Committee in January.
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