U.S. Senators Seek Compromise on Stablecoin Yields to Advance Stalled CLARITY Act

According to market news, U.S. senators are trying to push forward the stalled cryptocurrency market structure bill, the CLARITY Act, through a compromise on the issue of stablecoin yields.

The banking industry had previously successfully lobbied to pause the bill due to concerns that stablecoin yields would siphon off bank deposits. Maryland Senator Angela Alsobrooks, who is involved in the negotiations, stated at a banking summit that both sides may need to "compromise a bit" to allow for innovation growth while preventing deposit outflows. Senator Mike Rounds pointed out that yields should be tied to account activity rather than the amount held.

JPMorgan CEO Jamie Dimon hinted at the acceptability of a transaction-based yield model, which is also the position put forth by the cryptocurrency industry at the White House meeting. The recent rules proposed by the Office of the Comptroller of the Currency leave considerable room for customer incentive-based yield programs. Although the banking industry continues to emphasize the risks of yield loopholes to their business models, the bill could still advance to committee review if senators reach an agreement on the new compromise.