The US Senate Banking Committee has published a new draft of the CLARITY Act, which aims to determine the market structure for digital assets. According to CryptoAmerica host Eleanor Terrett, the committee shared the 309-page text it had prepared since January with the public on May 12.
The draft was brought to the agenda before the May 14 session
The committee will accept amendment proposals from lawmakers by the close of the next business day ahead of the regulatory session scheduled for May 14. This process indicates that political negotiations may accelerate before the bill approaches its final version.
CLARITY Act is a comprehensive market structure bill that aims to clarify by which institutions and under what rules digital assets will be controlled in the USA. The text aims to create the regulatory framework that the industry has been waiting for for a long time in terms of crypto assets, DeFi applications and stablecoin models.
Senate Banking Committee Chairman Tim Scott emphasized that the bill aims to protect consumers, strengthen the fight against financial crimes and keep the United States at the center of financial innovation.
Stablecoin returns create controversy
The new draft is largely similar to the version previously shared with the industry. However, the controversial provision regarding stablecoin yield or interest-like reward structures is preserved in the text. This article has become one of the main topics of tension between the banking sector and crypto companies.
While some financial institutions want restrictions on stablecoin reward programs, the crypto industry is carrying out intense lobbying activities at the last stage. At the heart of the debate is how stablecoin providers offering returns to users will compete with the traditional deposit system.
The bill also aims to increase consumer protections and expand the capacity to combat illicit financing. In this context, some additional regulations that may expand the powers of law enforcement forces in money laundering investigations are also being evaluated.
Legal protection for DeFi developers
The text also includes provisions similar to the Blockchain Regulatory Certainty Act. Accordingly, it is aimed to prevent developers who do not have direct control over user funds from being treated as money transfer service providers.
This regulation is seen as an important assurance for DeFi developers. Industry representatives have long argued that people who only develop software or contribute to the protocol infrastructure should not be held responsible as financial intermediaries.
It remains unclear whether the bill will become law or not. The final text does not contain a specific provision regarding crypto-related conflicts of interest of public officials. While Democrats state that they may have difficulty supporting the bill without a clear regulation on this issue, the White House opposes rules targeting a specific person.
If it passes committee, the bill would need to be aligned with the Senate Agriculture Committee version. At least 60 votes are required for final approval in the general assembly vote. That’s why the support of some Democratic senators is critical for the CLARITY Act to move forward.
