U.S. Senators Seek Compromise on Stablecoin Yields, Advance the CLARITY Act

Gate News: On March 11, U.S. Senators are attempting to make progress on the stalled CLARITY Act, a cryptocurrency market structure bill, by negotiating a compromise on stablecoin yield issues. The banking industry previously lobbied successfully to pause the bill, citing concerns that stablecoin yields could drain bank deposits. Senator Angela Alsobrooks from Maryland, involved in the negotiations, stated at a banking summit that both sides might need to “make some concessions” to prevent deposit outflows while allowing for innovation and growth. Senator Mike Rounds pointed out that yields should be linked to account activity rather than the amount held. JPMorgan CEO Jamie Dimon hinted that a transaction-based yield model could be acceptable, which aligns with the stance the crypto industry presented at a 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. Despite ongoing concerns from the banking sector about the risks of yield loopholes to their business models, if the senators reach an agreement on the new compromise, the bill could still advance to committee review.