CLARITY Act: Banking Groups Continue Stablecoin Yield Push as Senate Focus Shifts to Ethics, DeFi
Highlights
- Banking groups are still engaging with lawmakers on the stablecoin yield text.
- These groups had before now called for a broad ban on yields.
- The push from these groups come as the Senate turns its attention to ethics and DeFi issues.
Banking groups continue to push for a stablecoin yield ban in the CLARITY Act, despite the compromise agreement reached earlier this year. The lobbying by these groups comes as the Senate turns its attention to ethics and DeFi issues, with time running out to schedule a floor vote on the crypto bill before its August recess.
Banking Groups Push For Stablecoin Yield Ban In CLARITY Act
In an X post, crypto journalist Eleanor Terrett revealed that state bankers’ association conferences across the country are focusing on engaging with Senate lawmakers on stablecoin yield, citing people familiar with the gatherings. This signals a renewed push from banking groups for a stablecoin yield ban in the crypto bill.
CoinGape reported that JPMorgan CEO Jamie Dimon had vowed to fight the stablecoin yield provision despite the bill clearing the markup stage. Meanwhile, according to Terrett, the source said that the stablecoin yield issue remains “very much in play,” especially as senators outside the relevant committees learn more about the CLARITY Act. This is significant as the vote of these lawmakers could be pivotal as the crypto bill heads to a floor vote.
However, it is worth noting that Senate Republicans are currently focusing on reaching a deal with their Democratic counterparts on ethics and DeFi issues. The next steps in advancing the crypto bill also include merging it with the Agriculture Committee’s text before scheduling a floor vote.
As CoinGape reported, the U.S. Senate has scheduled last-minute meetings in a bid to advance the CLARITY Act and pass the crypto bill before the August recess. Acting Attorney General Todd Blanche also met with law enforcement groups earlier this week to address their concerns over the DeFi issue.
Odds of Trump Signing Bill This Year Fall Below 50%
The odds of President Trump signing the CLARITY Act into law this year have fallen to 48%, according to Polymarket data. This represents a massive decline from the high of 74% at the start of May, when the Senate Banking Committee advanced the crypto bill following the markup.
As CoinGape reported, Galaxy Digital has also lowered its odds of the crypto bill’s passage this year to 60% from 75% over the Senate’s tight schedule. Despite the tight schedule, lawmakers are still confident that they could get the crypto bill over the finish line by July 4.
Trump’s crypto advisor, Patrick Witt, has also expressed confidence that Congress could pass the CLARITY Act by July 4. However, time continues to run out with the Senate yet to set a floor vote for the crypto bill.
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