CLARITY Act is turning into a proxy war over who pays Americans for holding “digital dollars”

The CLARITY Act, initially framed as a battle for clear crypto regulation, has become a proxy war over stablecoin rewards, or yield, which banks view as a threat to deposits while proponents see it as innovation. A recent White House meeting failed to break the stalemate, leaving the issue of Section 404—which relates to yield—as the central sticking point, as it is the most relatable issue for the public (earning more than dust on their money). Political signaling, such as Senate Banking Chair Tim Scott linking digital assets to capital formation, suggests advocates are building public support for a pro-growth narrative. Meanwhile, staff in the Senate Agriculture committee are drafting related language, suggesting that the final legislation might be a stitched package moving on parallel tracks, increasing pressure to resolve the Banking Committee's jam.

(Source：CryptoSlate)