Clarity Act Fails March 1 Deadline as Stablecoin Yield Dispute Stalls Progress

The White House's self-imposed March 1 deadline for resolving the stablecoin standoff between banks and crypto firms has passed without a deal, leaving trillions in institutional capital uncertain. The core dispute centers on whether crypto firms can offer regulated yield on stablecoins like USDC. Banks strongly oppose this, fearing deposit flight due to stablecoin returns significantly outpacing traditional savings rates, and are lobbying for strict limits or a ban. Crypto firms are attempting workarounds via "membership programs, rewards, and staking." The Office of the Comptroller of the Currency (OCC) may support the banks' stance through recent rulemaking. The next steps involve Senate Banking Committee markup in mid-to-late March, negotiations in April, and a soft July deadline before election-year gridlock. Failure to compromise could lead to regulatory enforcement actions by the SEC and OCC, potentially delaying a massive institutional inflow wave projected by JPMorgan.

(Source：BeInCrypto)