CLARITY Act Deal Hits Roadblock Over Stablecoin Yield Dispute

The passage of the CLARITY Act in the Senate is facing significant hurdles as negotiations between banking representatives and crypto lobbyists continue to stall. One major point of contention is whether stablecoins can generate yield for users, with banks arguing that this would allow them to function like unregulated bank deposits.

Despite the White House's efforts to broker a deal, sources close to the talks indicate that the two sides remain far apart on key issues. Draft language has been proposed, but no consensus has been reached on how sharply to limit exchange incentives or what constitutes prohibited interest.