Crypto industry leaders are currently working on a counterproposal to push for some changes in the CLARITY Act after firms like Coinbase opposed the stablecoin yield compromise. This move comes just as the Senate prepares to release the draft text of the crypto bill, with markup likely to take place in April.
Crypto Leaders Pushing For Changes In CLARITY Act
In an X post, crypto journalist Eleanor Terrett, citing Coinbase’s Global Head of Investment Research, David Duong, said that industry leaders are currently working on a coordinated counterproposal. They aim to use this counterproposal to explain why the crypto bill needs some changes to protect consumers and preserve sustainable rewards programs.
This move comes after Coinbase opposed the stablecoin yield compromise, which imposes a broad ban on how crypto firms can distribute stablecoin rewards to customers. Notably, it bans rewards and idle balances, permitting only activity-based rewards that are not comparable to bank deposit interest.
Meanwhile, Terrett revealed that Senator Thom Tillis’ office plans to publicly release the draft next week detailing stablecoin yield and rewards provisions, even as talks with stakeholders continue. Senator Tillis and Senator Angela Alsobrooks reached a deal with the White House last week to include language in the CLARITY Act to resolve the clash between banks and the crypto industry over stablecoin rewards.
As CoinGape reported earlier today, Senator Tim Scott, the Chair of the Senate Banking Committee, highlighted the crypto bill’s progress. This came as he revealed that the White House, Republicans, and Democrats are working together on language that both parties agree on to pass the CLARITY Act.
Senator Lummis Addresses DeFi Protections In Crypto Bill
Pro-crypto Senator Cynthia Lummis addressed speculation that the CLARITY Act contained provisions that undermined the Blockchain Regulatory Certainty Act (BRCA), which protects developers and provides safeguards for decentralized finance (DeFi).
She urged market participants not to believe the FUD, stating that they have been working on a bipartisan basis over the last few weeks to make changes to Title 3, thereby making the crypto bill the “strongest protection for DeFi and developers.” We have to pass the Clarity Act to get these protections.
Senator Lummis had also earlier stated that a bipartisan compromise was necessary for the CLARITY Act to pass. She further remarked that they are working around the clock to ensure that stablecoin rewards are protected and to prevent deposit flight from community banks. “America’s financial future is at stake now— we can’t wait until 2030 for another chance,” she added.
It is worth noting that the odds of Trump signing the bill into law this year have dropped to 59%, according to Polymarket data. Optimism is once again fading as banks and the crypto industry have yet to reach a compromise on the latest draft, potentially delaying the crypto bill’s markup, which is expected to take place next month.
