As negotiations continue on the Clarity Act, one of the most important drafts for cryptocurrency regulation in the US, a final agreement on stablecoin yields is expected to be released to the public this week.
This development shows that even though Congressional work is suspended for the Easter holiday, intense behind-the-scenes contacts are continuing unabated.
The draft text is expected to clarify how companies issuing stablecoins can offer rewards to their users. In particular, how these reward mechanisms will be structured without causing deposit outflows from banks is highlighted as one of the most critical aspects of the regulation. The initial draft, previously agreed upon between Thom Tillis, Angela Alsobrooks, and the White House, had drawn significant criticism from the industry. That version prohibited companies from offering direct or indirect interest-like returns on passive stablecoin balances, allowing only activity-based rewards.
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However, some major industry representatives, including Coinbase and Stripe, found this approach insufficient and raised objections that the regulation could limit innovation. The new text is expected to offer a more balanced framework, based on discussions with both crypto companies and banks.
The Senate Banking Committee is scheduled to markup the bill during the last two weeks of April. According to this timeline, there are approximately three weeks of critical deliberation before the bill passes the committee and is brought to the Senate floor.
On the other hand, full consensus has not yet been reached on issues such as stablecoin yields, decentralized finance (DeFi), token classification, and tokenization. These issues are expected to be the subject of intense debate before the final meetings, which will be officially scheduled by Committee Chairman Tim Scott.
*This is not investment advice.
