Congress Faces Deadline to Pass Clarity Act Amid Stablecoin Rewards Debate

Congress's efforts to pass the CLARITY Act, a market-structure bill aimed at setting clearer rules for US crypto markets, are facing significant challenges. The bill has stalled due to disagreements over stablecoin rewards, with banks pushing for a ban on incentives that resemble interest on deposits.

Industry participants and lobbyists say that late April or early May is the practical window for the bill to move if it is to have a realistic chance before the election-year calendar tightens. The Senate's market-structure bill has been held up by negotiations breaking down over so-called stablecoin yield, leaving many wondering whether dollar-linked digital tokens will remain focused on payments and settlement or gain features that make them more competitive with bank accounts and money market funds.