In January, crypto giant Coinbase pulled<\/a> its support for the Clarity Act over potential language in the bill, supported by the banking lobby, that could have restricted such stablecoin yield programs. For months, both industries have gone back and forth in an effort to find a compromise on the issue\u2014one that has proved elusive<\/a>.<\/p>\nLast month, a bipartisan group of senators, along with the White House, proposed a final compromise<\/a> on the issue, in an effort to put it to bed. But Coinbase took issue with the proposal, sources familiar with the matter told Decrypt. Now, a revised proposal is floating around Capitol Hill\u2014but that one has irked the banking industry, other sources familiar with the latest deliberations said.<\/p>\n\u201cWe\u2026 continue to offer our constructive ideas for tightening the yield prohibition because of the real risks to lending and economic growth,\u201d a banking industry source said in a statement shared with Decrypt.\u00a0<\/p>\n
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Congressional leaders worry time is running out for the Clarity Act to pass this spring, before November\u2019s looming midterm elections grind all legislative activity to a halt over the summer.<\/p>\n
The authors of the Clarity Act initially pushed to have the bill passed by last July, with timelines slipping further to September, December, and ultimately this January. Now, key pro-crypto senators have signaled<\/a> that if the bill isn\u2019t passed by May, it\u2019s unlikely to pass this year under the current Republican trifecta.<\/p>\n\u201cSenate floor time is scarce, and now is the time to act,\u201d Bessent said on Thursday.<\/p>\n
Should the stablecoin yield issue be resolved in the coming weeks, several hurdles would still remain. They include the matter of President Donald Trump\u2019s numerous personal crypto ventures, which several pro-crypto Senate Democrats have said must be outlawed<\/a> to earn their support. The White House has balked at such demands.<\/p>\nThe thorny subject is likely to prominently resurface in the coming weeks, given that the backers of Trump\u2019s meme coin are set to hold an exclusive event for top token holders<\/a> at Mar-a-Lago on April 25\u2014right in the thick of the push to get the Clarity Act finally passed through the Senate Banking Committee.<\/p>\nThe event promises<\/a> to feature Trump himself at a \u201cgala luncheon.\u201d The president is set to attend<\/a> the annual White House Correspondents\u2019 Dinner in Washington later that evening.\u00a0<\/p>\nDaily Debrief Newsletter<\/p>\n
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