The Clarity Act could be moving for mark up.
The Senate could finally be moving towards a mark up for the Clarity Act as negotiations on stablecoin yield seem to have reached an agreement. Language in published text prohibits yield that bears a resemblance to interest on deposits, while allowing for activity-based rewards.
The Clarity Act has been stuck since January as both the crypto and banking industries have been very particular on the type of language that is included into the bill. This is likely now at a compromise stage between the two parties per the latest scoop per Punchbowl.
Recently, the White House published a stablecoin study on how stablecoins impact deposit flight for regional U.S. banks. The Clarity Act will also bring clear regulations onto other topics including DeFi, tokenization of real world assets, and developer safety.
If this passes the Senate Banking Committee’s mark up, next stage would be a full Senate vote, then a House vote, and if no reconciliation is required (if the House votes to pass and not implement changes from their version last summer), signed by the President late summer.
The Genius Act currently does not permit payment stablecoin issuers from passing on direct yield to holders. However, this does not apply to third-party agreements or promotions to get new users on platforms.
