CLARITY Act Delayed: Dispute Over Stablecoin Yields Blocks Crypto Legislation

In Washington, the conflict over stablecoin regulation is escalating, thereby delaying further progress on the CLARITY Act. As journalist Eleanor Terrett reports, the White House has given both sides a deadline until the end of February to find common ground ^[1].

The catalyst was an unsuccessful meeting at the White House, where representatives of major banks presented a position paper. In it, they call for a blanket ban on any yields and rewards on stablecoins ^[1].

The crypto industry vehemently opposes this position. The Digital Chamber, an industry association with over 130 member companies, presented a counterproposal: while stablecoins should primarily serve as a means of payment, they should be allowed to generate returns in DeFi applications. The goal is to protect DeFi liquidity and strengthen dollar dominance ^[1].

Although the proposal from the Senate Banking Committee environment is described as "constructive," parts of it are considered too far-reaching for the banking side. Another meeting at the White House may take place as early as this week. An agreement is considered a prerequisite for the next Senate vote ^[1].