CLARITY Act Negotiations Stalled Over Stablecoin Yield Regulations

The CLARITY Act, aimed at defining digital asset oversight and market structure reforms, has hit a roadblock in negotiations between banks and crypto firms. The main point of contention revolves around stablecoin yield regulations, with banks pushing for tighter limits and crypto firms opposing the restrictions.

According to sources close to the talks, draft language exists but the sides are 'not close' to reaching an agreement. Banking trade groups have rejected claims that negotiations are collapsing, stating discussions are ongoing and input on draft text continues.

The bill's progress is stalled in the Senate Banking Committee, with no markup completed and no floor vote scheduled. The legislation's fate hangs in the balance as banks and crypto firms struggle to agree on stablecoin economics.