The Clarity Act, one of the most significant bills regarding the regulation of cryptocurrencies in the United States, is nearing its end.
At this point, the Clarity, also known as the Transparency Act, is expected to be discussed and voted on by the Senate Banking Committee on May 14.
There has been a new development regarding the CLARITY Act, which the cryptocurrency industry has been eagerly awaiting.
Eleanor Terrett, host of Crypto in America
Committee members must submit their proposed amendments before the end of work on May 13, before the meeting scheduled for May 14.
The draft largely mirrors a version previously shared with the industry, but retains a controversial provision regarding stable coin yield and interest structure. It also includes legal protections for decentralized finance (DeFi) developers, reflecting significant industry demand.
However, the latest bill does not include a provision limiting cryptocurrency-related conflicts of interest for public officials. Democrats say they will have difficulty supporting the bill without such a provision, while the White House opposes rules that target specific individuals.
The banking committee had originally planned a meeting in January but canceled it at the last minute after major cryptocurrency exchange Coinbase withdrew its support over concerns including how stablecoin rewards were managed. That problem was resolved earlier this month when lead Democratic negotiators, Senators Angela Alsobrooks (Maryland) and Thom Tillis (Calif.), introduced a clause preventing certain companies from paying interest simply for holding stablecoins, or any payment that is “economically or functionally equivalent to the payment of interest or the yield on an interest-bearing bank deposit.”
In conclusion, if the CLARITY bill is adopted in committee, it will have to be reconciled with the version published by the Senate Agriculture Committee before a vote in the general assembly. At least 60 votes will be needed for final approval, making support from some Democrats essential.
The White House hopes the bill will be approved in early July. Some participants, however, suggest that discussions could continue until the beginning of August.
*This does not constitute investment advice.