CLARITY Act Odds Rise as Crypto and Banking Leaders Review Stablecoin Yield Text

The rise in the CLARITY Acts odds comes as crypto and banking leaders are set to review the stablecoin yield text in the crypto bill.

Crypto firms will review this proposed final language in the crypto bill as soon as today, while the banks are likely to review it tomorrow. This latest proposal comes as the Senators held several meetings with representatives from both the crypto and banking industries to collect feedback on an initial agreement on this issue.

Senators Tillis and Alsobrooks had reached a deal with the White House last month on the language to include in the CLARITY Act to resolve the stablecoin yield clash between the crypto and banking industries.

However, crypto firms such as the top crypto exchange Coinbase notably pushed back on that text, as it imposed a broad ban on stablecoin rewards and allowed only activity-based rewards that are not equivalent to deposit interest.

A Deal Could Happen By Tomorrow

The CLARITY Act odds have also jumped amid expectations that the crypto and banking industries could soon reach a deal over the stablecoin yield text. Coinbase CLO Paul Grewal said yesterday that a deal on stablecoin rewards could be reached by tomorrow.

Meanwhile, the crypto bill‘s markup could happen this month once the Senate returns from its recess, and a floor vote could follow shortly after. There have been concerns that other issues, such as DeFi and developer protections in the bill, could serve as roadblocks to the CLARTIY Act’s progress.

However, pro-crypto Senator Cynthia Lummis has assured that the latest draft adequately addresses DeFi issues and developer protections. She described the crypto bill as the “best thing” that could happen to the DeFi community and that it finally gives them the legal certainty they deserve. “Developers, validators, and node operators will finally have a safe harbor, and we can ensure American innovation can stay right here on US soil,” the senator added.