Congress has only weeks left to convince banks on crypto CLARITY Act or risk losing it to midterms
Congress faces a tight deadline, likely late April or early May, to pass the CLARITY Act before midterms complicate the legislative calendar.Summary
The President-backed effort to establish broader rules for US crypto markets, embodied in the Senate's CLARITY Act, is stalled due to disagreements over stablecoin yield features that resemble interest on deposits. Banks strongly oppose these rewards, fearing deposit migration, while crypto firms argue they are necessary for digital dollars to compete with traditional payment rails. Congressional Research Service analysis suggests existing legislation might not fully resolve the ambiguity surrounding yield payments via intermediaries. Industry experts suggest a narrow window in late April or early May exists for the bill to advance before the midterm election calendar tightens, making passage significantly harder. If Congress fails to act, regulators, such as the OCC, are signaling they may use rulemaking to define the boundaries of reward structures. Failure to pass the CLARITY Act would leave the industry dependent on regulatory guidance and subject to potential policy reversals by future administrations, whereas passage could cement current regulatory advantages and accelerate market growth.
(Source：CryptoSlate)