Negotiations on the CLARITY Act – the Senate’s long-awaited crypto market structure bill – appear to be close to wrapping up, but key details remain under wraps and no official date has been set for a Senate Banking Committee markup.
Industry sources and journalists following the negotiations say progress has been significant, but the final text of the bill and its ability to address the problem long-standing dispute between banks and crypto companies have not been publicly confirmed.
Banks’ concerns are taken into account
Senator Cynthia Lummis, who chairs the digital assets subcommittee of the Senate Banking Committee and was one of the lead negotiators, said Dear colleagues, discussions are “99% of the way to a resolution” on the thorny issue of stable coin yield.
This indicates that dealmakers believe they are close to bridging a central divide: banks’ fear that yield on stablecoin deposits could cause a deposit flight and strain traditional lending, versus crypto companies’ desire for commercially viable yield options.
Reporting from Crypto In America’s Eleanor Terrett added new details to the picture. Terrett said the White House has tentatively reached a compromise with Senators Thom Tillis and Angela Alsobrooks, who worked for nearly two months to develop language related to the CLARITY Act.
According to Terrett, the plan would recognize the concerns of the banking sector and would likely include measures to limit the yield on unused balances. Banking sources said Terrett does not yet know the precise content of the text and said the provision has remained closely guarded.
Senate to hear comments on cryptocurrencies and banks this week
Industry engagement in the process continues this week. Representatives of crypto trade associations are expected to meet with the Senate Banking Committee later Monday, while banking groups are expected to review the draft text on Tuesday.
These briefings will be key: crypto players must decide whether the compromise language is acceptable, and banks will consider whether the bill sufficiently meets their needs. deposit leak concerns.
Although the project would include a ban on returns on unused balances, other sensitive issues remain unresolved. Terrett reported that the bill still needs work in several areas, including decentralized finance (DeFi), token classification, and tokenization.
These sections will require careful drafting to balance innovation, investor protection and financial stability before Banking Committee Chairman Sen. Tim Scott can decide to provide a markup.
As NewsBTC reported last Friday, some sources suggest that an increase could take place between mid and late April, although no formal timetable has been announced by the Banking Committee.
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