The publication of the most current draft text of the Clarity Act, which closely concerns the crypto industry in the American Congress, has been postponed once again. In particular, disagreements on whether to ban rewards or interest for outstanding balances in stablecoin accounts constitute a significant obstacle in determining the final version of the bill.
Draft text and reason for postponement
Within the scope of the work carried out by Senator Thom Tillis, the new draft of the Clarity Act regarding stablecoin returns was expected to be presented to the public this week. However, Tillis stated that he was waiting for the calendar regarding the Banking Committee’s next agenda to be clarified, and postponed the announcement of the text to the following weeks. Sources close to the matter stated that the regulatory team is still in talks with bank associations and crypto companies.
In the current draft, it is stated that the payment of rewards for balances held in stablecoin accounts is completely prohibited, and only returns arising from active movements such as transactions will be allowed. According to sources, it is emphasized that it is now difficult to make radical changes in the text.
Background to the complex debate
The long-awaited Clarity Act aims to create a comprehensive framework to regulate the crypto asset sector. The basis of the debate is whether passive returns should be banned in stablecoins. The GENIUS Act, passed last year, banned stablecoin issuers from providing such rewards; However, it did not directly prevent third-party platforms such as exchanges from distributing rewards.
Uncertainty on this issue is closely followed by both the traditional banking sector and cryptocurrency companies. Major American banks argue that offering rewards for stablecoin balances would lead to a massive deposit shift in the industry. In contrast, major crypto companies, including Coinbase, express the view that such a ban would stop financial innovation and could actually create new business opportunities for banks.
According to some records, the current draft law only prevents rewards from being paid to stablecoin balances held in the account; It does not hinder the income of the users who make transactions.
Despite the search for consensus, deadlock continues
Since the beginning of the year, the White House has held closed meetings to reach consensus between the parties. However, since banks and crypto representatives maintain their current positions, a common ground has not yet been reached. Senators Tillis and Angela Alsobrooks are continuing their negotiations to clarify this most critical article of the bill.
Despite the ongoing negotiations in Congress, there is no definitive consensus on how the return will be presented, especially in stablecoins. Optimistic expectations for the bill to become law by the end of 2025 as planned have been seriously weakened by these latest developments.
