CLARITY Act Stalls in Senate Over Stablecoin Yield Disagreements

The CLARITY Act, aimed at defining regulatory clarity between the SEC and CFTC, has hit a roadblock in the Senate due to disagreements over stablecoin yield. Banks and crypto firms are divided on whether stablecoins can generate yield for users, with banks arguing that it could function like unregulated bank deposits.

The White House had convened meetings between banks and crypto firms in recent weeks, pushing for a deal on yield before March. However, sources say key language remains unresolved, with no finalized text available. Draft language exists, but the sides are 'not close' to a resolution.