Senate Committee Approves Clarity Act on Cryptocurrency Regulation

The Senate Banking Committee has given its approval to a version of the Clarity Act, a bill intended to establish clear regulations for the cryptocurrency industry.

The bill passed by a vote of 15-9, with two Democrats joining the panel's 13 Republicans in supporting the legislation. The bill will now head to the full Senate, where it needs 60 votes to be fully considered and must be reconciled with a House bill passed last July.

Language concerning stablecoin yields, written by Alsobrooks and Sen. Thom Tillis, R-NC, survived intact. This language bars crypto firms from issuing rewards for stablecoin balances that are 'economically or functionally equivalent' to interest-bearing bank deposits.