CLARITY Actor crypto market infrastructure legislation is pending in the Senate after being approved in the House of Representatives, and depends largely on whether stablecoin holders will benefit from the yield (or interest payments).
Because stablecoins must have matching, low-risk assets, such as treasury bonds, the resulting returns can be shared with their holders. Banks are concerned about potential competition because many people still hold money in old bank savings accounts that earn little or no interest. While the answer to the legacy banks’ fear is clear to everyone, they need to stand out and compete; The banking sector is extremely effective in lobbying.
Reports have emerged recently that a deal is on the way, as the Trump administration grows frustrated with the banking industry’s inability to adapt. There are rumors that a “limited return” compromise is on the table, meaning passive interest is over, but rewards can still be generated from payments and transfers. The aim is to prevent the “deposit flight”, but there is no evidence that this will definitely happen.
during DC Blockchain SummitSenator Tim Scott, President Senate Banking Committee, He said that they were making progress in terms of language and that an offer could come to him this week.
While there are other issues with the CLARITY Act, a compromise on stablecoin yields acceptable to the crypto industry would be a big win for the legislation that is likely to become law soon.
