The proposed Clarity Act has been stalled in the Senate due to opposition from banks over certain provisions related to stablecoin issuers and crypto firms.
The White House had brokered a compromise to allow stablecoin rewards in some circumstances, but banks have refused to support it, citing concerns about deposit flight. Crypto companies, on the other hand, see the provision as essential for their businesses to compete with traditional banking services.
President Trump has weighed in on the issue, accusing lenders of trying to undermine the crypto agenda and vowing not to allow them to succeed. The bill's fate is uncertain, but analysts predict that it may not pass this year due to a tight deadline and potential changes in Congress after the mid-term elections.