Clarity Act Hits Another Roadblock in US Crypto Market-Structure Bill

The US crypto market-structure bill, known as the Clarity Act, has encountered another hurdle in its passage due to a stalemate between traditional banking interests and crypto firms over stablecoin features.

According to reports, banks have rejected a proposed compromise being floated in Washington, which would allow for tighter constraints around stablecoin features that resemble interest-bearing accounts. This move has reignited doubts about whether the bill can be passed this year.

The Clarity Act seeks to establish clearer lines between commodities and securities laws, reshaping oversight across the market. However, negotiators have hit a snag: banks want stricter regulations on stablecoins, while many crypto firms argue that would undermine consumer-facing products and innovation.