As negotiations continue on the Clarity Act, one of the most significant plans to regulate cryptocurrencies in the United States, a final agreement on stablecoin yields is expected to be made public this week.
This development shows that even though the work of Congress is suspended for the Easter holidays, intense contacts behind the scenes continue 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 regulation. The initial project, previously agreed between Thom Tillis, Angela Alsobrooks and the White House, had sparked strong criticism from the industry. This version prohibited companies from offering direct or indirect interest-like returns on passive stablecoin balances, only allowing activity-based rewards.
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However, some major industry representatives, including Coinbase and Stripe, have deemed this approach insufficient and raised objections that regulation could limit innovation. The new text is expected to provide a more balanced framework, based on discussions with crypto companies and banks.
The Senate Banking Committee is expected to consider the bill in the last two weeks of April. Under this schedule, it will take about three weeks of critical deliberations before the bill passes committee and goes to the Senate.
On the other hand, full consensus has not yet been reached on issues such as stable coin 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 does not constitute investment advice.
