CLARITY Act Still Faces Push From Banks as Yield Fight Stalls Deal
Negotiations for the CLARITY Act are stalled in the Senate due to a persistent disagreement between banks and crypto lobbyists over stablecoin yield payments.Summary
The CLARITY Act, which aims to define regulatory oversight between the SEC and CFTC for digital assets, remains stalled in the Senate Banking Committee despite White House efforts to broker a breakthrough. The primary obstacle is a dispute over stablecoin yield. Banks advocate for strict limits or a ban on interest or yield payments tied to stablecoin holdings, fearing they function as unregulated deposits. Conversely, crypto firms argue that allowing responsible yield generation is crucial for innovation. While the House passed the bill in July 2025, the Senate negotiations are blocked by this disagreement, preventing progress on broader market structure reforms. Four core issues remain unresolved: whether stablecoin rewards constitute prohibited interest, limits on exchange incentives, the SEC/CFTC boundary, and DeFi obligations. The bill's future depends on settling the stablecoin economics fight before it gets further entangled in election-year politics.
(Source：BeInCrypto)