Senate Clarity Act Latest Text Prohibits Stablecoin Balance Earnings, Crypto Industry Deems Restrictions Too Strict

Odaily News According to reports, the latest revised text of the U.S. Senate's Digital Asset Market Structure Act, the Clarity Act, has been made public to the crypto industry for the first time, with provisions concerning stablecoin earnings raising industry concerns. The latest version, championed by Senators Angela Alsobrooks and Thom Tillis, would prohibit earning yields solely from holding stablecoins. It also restricts any schemes resembling bank deposit interest, allowing only reward programs based on user stablecoin activity, not their balances.

The banking industry has previously insisted that stablecoin rewards must not resemble interest-bearing deposits, arguing that such competing products could weaken the banking sector and impact lending businesses. Informed sources within the crypto industry believe this clause is overly narrow and unclearly worded. The bill has already passed one version in the House of Representatives, and the Senate Agriculture Committee has also passed its review. It now needs to pass a hearing in the Senate Banking Committee before it can proceed to a final consolidated version.

Furthermore, the bill still faces disagreements on provisions regarding DeFi regulation and prohibiting senior government officials from profiting from the crypto industry.