Particle.news
Download on the App Store

Senate Stablecoin Deal Revives CLARITY Act Despite Bank Opposition

The compromise narrows the dispute to a committee vote under a tight May window.

Overview

  • Senators Thom Tillis and Angela Alsobrooks released compromise text late last week that bans deposit‑like interest on stablecoins while allowing narrowly defined rewards tied to use of a platform.
  • Coinbase and other crypto groups endorsed the draft and urged action, while major banking associations said the language “falls short” because balance‑based loyalty or membership perks could replicate yield.
  • Banking Committee Chair Tim Scott said Monday the panel is working toward a May markup, and Ripple CEO Brad Garlinghouse warned the bill’s chances drop sharply if it slips beyond the next two weeks.
  • The draft directs the SEC, CFTC, and Treasury to spell out which activity‑based rewards are permissible within a year of enactment, which investors say leaves uncertainty even as prediction‑market odds and crypto equities rose on the news.
  • The CLARITY Act passed the House in 2025 and aims to set market‑structure rules and split SECCFTC oversight, with next steps including a Banking Committee vote, 60 votes on the Senate floor, and reconciliation with other versions before the president can sign it.