Senate Crypto Legislation Hits Snag Over Stablecoin Rewards

The Senate's efforts to pass comprehensive crypto legislation have hit another snag as the CLARITY Act markup has been postponed to May. The primary point of contention revolves around the regulation of stablecoin rewards, with traditional banking institutions expressing concerns over potential deposit outflows.

Despite broad bipartisan support in the House nearly a year ago, the bill must still clear the Senate Banking Committee. Senator Thom Tillis, a key negotiator, has requested a delay to May to allow for further public input and negotiation between stakeholders.

The postponement comes amid mounting pressure from industry advocates, including the Digital Chamber, which has called for immediate progress on the legislation. The organization emphasized that over 270 days have passed since the House approved the bill.