CLARITY Act Stalls in Senate Amid Stablecoin Yield Disputes

The CLARITY Act, a market structure framework bill, has hit a roadblock in the Senate due to disagreements between banks and crypto firms over stablecoin yield. The White House had convened meetings between the parties to reach an agreement, but no final deal has been reached.

Banking representatives and crypto lobbyists are divided on whether stablecoins can generate yield for users, with banks supporting tighter limits. This dispute has blocked progress in the Senate, and the bill remains stuck in committee.

The CLARITY Act aims to define when digital assets fall under SEC oversight and establish registration rules for exchanges, brokers, and custodians. However, the stablecoin yield issue has become a major hurdle, with no markup completed and no floor vote scheduled.