US Crypto Clarity Act Nears Crucial Decision Point

The US Crypto Clarity Act has been stuck in the Senate for months, but a recent compromise on stablecoin rewards may be the turning point.

The bill aims to end years of confusion over how digital currencies like Bitcoin and Ethereum should be regulated. Currently, two government agencies, the Securities and Exchange Commission and the Commodity Futures Trading Commission, both claim authority over crypto, leaving businesses and investors in a legal grey zone.

A compromise text has been released, banning stablecoin firms from paying bank-style interest but allowing rewards tied to real activity on crypto platforms. Major crypto companies have backed the deal, with Ripple CEO Brad Garlinghouse calling it 'a step in the right direction'.

However, not everyone is celebrating, with BitMEX co-founder Arthur Hayes arguing that the bill mainly benefits large centralized companies with lobbyists in Washington.