After a major delay due to banking industry representatives fearing that revenue would drop if stablecoin holders were to profit from their earnings, Digital Asset Market CLARITY Act of 2025 planned for now Senate Banking Committee The hearing on this will be held on Thursday, May 14.
Legislative action has come when to compromise Agreement was reached on “rewards” for stablecoin holders. While banking institutions are disappointed with this compromise, the bill is expected to be passed with bipartisan support, with a price increase, and then a vote in the Senate.
Banking associations met last week express dislike of compromise.
“We will share with lawmakers our detailed recommendations to strengthen the proposed language in the coming days and continue to work in good faith to help Congress embrace innovation while protecting local loans and deposits that drive economic activity in communities.”
The misconception of the banking industry’s reluctance is that they can compete directly with stablecoin issuers on equal terms. Depositors may receive a higher interest rate which will encourage them to stay with a bank. Because banks have well-established customers and switching banks is often hindered by customer inertia, banks remain well positioned to profit from any rewards or returns associated with stablecoin holdings.
Once approved in the Senate, the bill must be reconciled with the House version of the CLARITY Act before moving to the White House to be signed into law. Expectations are that the law will become law before the Congress summer recess.
