Latest developments: Sen. Angela Alsobrooks said she will not support the Clarity Act on the Senate floor unless negotiators reach agreement on ethics provisions and other outstanding issues.
- Alsobrooks said ethics concerns remain a major sticking point, alongside illicit finance provisions and work still needed in the Agriculture Committee.
- She characterized her committee vote advancing the bill as support for continued bipartisan negotiations, not unconditional support for final passage.
- “We’re almost there, but not quite there yet,” Alsobrooks said of the negotiations.
- Alsobrooks joined Rebecca Rettig and Renato Mariotti on CoinDesk’s The Policy Protocol.
The compromise: Alsobrooks defended the stablecoin yield language that drew criticism from JPMorgan Chase CEO Jamie Dimon and parts of the banking industry.
- She said she was among the first senators to raise concerns that allowing interest-bearing stablecoins could trigger deposit flight from community banks.
- According to Alsobrooks, negotiators spent roughly nine months crafting language that bars crypto firms from paying yield solely on stablecoin balances and prevents firms from offering products that mimic bank accounts without bank-like protections.
- She argued the final compromise balances industry innovation with consumer and banking-sector protections, even if neither side is fully satisfied.
Why it matters: Alsobrooks framed crypto regulation as a response to growing consumer adoption rather than a speculative future policy debate.
- She noted that tens of millions of Americans already own cryptocurrency and said lawmakers have a responsibility to establish consumer protections.
- The senator argued that digital assets represent an economic opportunity many younger Americans believe they need as traditional paths to wealth become less attainable.
- She said the goal is to ensure the U.S. remains a leader in digital asset innovation while protecting consumers from harm.
Reading between the lines: Alsobrooks suggested Democratic skepticism toward crypto legislation is driven less by the technology itself than by concerns about corruption, ethics and fraud.
- She pointed to concerns involving President Trump’s business interests and broader questions about ethics in the digital asset space.
- She said many lawmakers remain focused on preventing scams and strengthening protections for consumers who have already suffered losses.
- Alsobrooks argued that remaining engaged in negotiations is the best way to ensure constituents have a voice in shaping the final rules.
What comes next: The senator outlined a short list of priorities needed to move the legislation across the finish line.
- Negotiators must finalize ethics provisions acceptable to both parties.
- Lawmakers are still working through illicit finance language championed by Sen. Catherine Cortez Masto.
- The Agriculture Committee must also reach a bipartisan agreement before final Senate consideration can proceed.
