Senators try to unlock stalled crypto Clarity Act with compromise on stablecoin yield
Senators are negotiating a compromise on stablecoin yields to revive the stalled crypto Clarity Act, aiming to prevent deposit flight from traditional banks.Summary
Lawmakers are working to resolve a dispute over stablecoin rewards to advance the Digital Asset Market Clarity Act, which had been stalled due to concerns from the banking industry. Bankers fear that high yields on stablecoins could incentivize customers to withdraw deposits from traditional banks. Senator Angela Alsobrooks and Senator Thom Tillis are leading negotiations, seeking a compromise that allows for some customer rewards while preventing significant deposit flight. The potential compromise focuses on allowing rewards for narrower areas of stablecoin activity. While JPMorgan Chase CEO Jamie Dimon has suggested accepting transaction-based rewards, other issues remain unresolved, including concerns about decentralized finance (DeFi) and potential conflicts of interest involving government officials. Procedural hurdles and other legislative priorities also pose challenges to the bill's passage.
(Source：CoinDesk)