Senate 'Clarity Act' Nears Completion Amid Ethics Controversy

The U.S. Senate's 'Clarity Act' to define market structure rules for digital assets is nearing completion, according to insider sources.

A recent note from Arca managing director David Ng suggests that the bill is '85% written' on substance, with only 15% remaining to be finalized.

The contentious issue of stablecoin yield has been settled, with banks opposing the idea of allowing passive interest on tokenized dollars, which they fear could trigger massive deposit flight.

However, a compromise was reached in Section 404, banning passive deposit-like interest but permitting activity-based rewards for staking, payments, and loyalty programs.

The main sticking point now is an ethics provision aimed at conflicts of interest for top officials, particularly the Trump family's crypto ventures, estimated to be worth $1.4, $2.3 billion.